DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Bunge LTD | ||
Entity Central Index Key | 1,144,519 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 10,448 | ||
Entity Common Stock, Shares Outstanding | 140,699,827 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | bg |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 45,794 | $ 42,679 | $ 43,455 |
Cost of goods sold | (44,030) | (40,269) | (40,762) |
Gross profit | 1,764 | 2,410 | 2,693 |
Selling, general and administrative expenses | (1,445) | (1,286) | (1,435) |
Interest income | 38 | 51 | 43 |
Interest expense | (263) | (234) | (258) |
Foreign currency gains (losses) | 95 | (8) | (8) |
Other income (expense)—net | 49 | 12 | (18) |
Gain on disposition of equity interests/subsidiaries and sale of assets | 9 | 122 | 47 |
Equity investment impairments | (17) | (59) | 0 |
Goodwill and intangible impairments | 0 | (12) | (13) |
Income (loss) from continuing operations before income tax | 230 | 996 | 1,051 |
Income tax (expense) benefit | (56) | (220) | (296) |
Income (loss) from continuing operations | 174 | 776 | 755 |
Income (loss) from discontinued operations, net of tax | 0 | (9) | 35 |
Net income (loss) | 174 | 767 | 790 |
Net (income) loss attributable to noncontrolling interests | (14) | (22) | 1 |
Net income (loss) attributable to Bunge | 160 | 745 | 791 |
Convertible preference share dividends and other obligations | (34) | (36) | (53) |
Net income (loss) available to Bunge common shareholders | $ 126 | $ 709 | $ 738 |
Earnings (loss) per common share-basic | |||
Net income (loss) from continuing operations (in dollars per share) | $ 0.90 | $ 5.13 | $ 4.90 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | (0.06) | 0.24 |
Net income (loss) to Bunge common shareholders (in dollars per share) | 0.90 | 5.07 | 5.14 |
Earnings (loss) per common share-diluted | |||
Net income (loss) from continuing operations (in dollars per share) | 0.89 | 5.07 | 4.84 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | (0.06) | 0.23 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ 0.89 | $ 5.01 | $ 5.07 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 174 | $ 767 | $ 790 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustment | 203 | 713 | (2,550) |
Unrealized gains (losses) on designated cash flow and net investment hedges, net of tax (expense) benefit of $(1), nil and nil | (105) | (305) | 147 |
Unrealized gains (losses) on investments, net of tax (expense) benefit of $(1), nil and nil | 2 | 0 | 0 |
Reclassification of realized net losses (gains) to net income, net of tax expense (benefit) of $2, nil and nil | (41) | (11) | 77 |
Pension adjustment, net of tax (expense) benefit of $(4), $4 and $1 | 5 | (11) | 20 |
Total other comprehensive income (loss) | 64 | 386 | (2,306) |
Total comprehensive income (loss) | 238 | 1,153 | (1,516) |
Less: comprehensive (income) loss attributable to noncontrolling interest | (30) | (26) | 5 |
Total comprehensive income (loss) attributable to Bunge | $ 208 | $ 1,127 | $ (1,511) |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gains (losses) designated cash flow and net investment hedges, tax (expense) benefit | $ (1) | $ 0 | $ 0 |
Unrealized gains (losses) on investments, tax (expense) benefit | (1) | 0 | 0 |
Reclassification of realized net losses (gains) to net income, tax expense (benefit) | 2 | 0 | 0 |
Pension adjustment, tax (expense) benefit | $ (4) | $ 4 | $ 1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 601 | $ 934 |
Time deposits under trade structured finance program (Note 4) | 0 | 64 |
Trade accounts receivable (less allowances of $107 and $122) (Note 18) | 1,501 | 1,676 |
Inventories (Note 5) | 5,074 | 4,773 |
Other current assets (Note 6) | 3,227 | 3,645 |
Total current assets | 10,403 | 11,092 |
Property, plant and equipment, net (Note 7) | 5,310 | 5,099 |
Goodwill (Note 8) | 515 | 373 |
Other intangible assets, net (Note 9) | 323 | 336 |
Investments in affiliates (Note 11) | 461 | 373 |
Deferred income taxes (Note 14) | 516 | 524 |
Time deposits under trade structured finance program (Note 4) | 315 | 464 |
Other non-current assets (Note 12) | 1,028 | 927 |
Total assets | 18,871 | 19,188 |
Current liabilities: | ||
Short-term debt (Note 16) | 304 | 257 |
Current portion of long-term debt (Note 17) | 15 | 938 |
Letter of credit obligations under trade structured finance program (Note 4) | 315 | 528 |
Trade accounts payable (includes $583 and $522 carried at fair value) | 3,395 | 3,485 |
Other current liabilities (Note 13) | 2,186 | 2,476 |
Total current liabilities | 6,215 | 7,684 |
Long-term debt (Note 17) | 4,160 | 3,069 |
Deferred income taxes (Note 14) | 223 | 239 |
Other non-current liabilities | 916 | 853 |
Commitments and contingencies (Note 21) | ||
Equity (Note 23): | ||
Convertible perpetual preference shares, par value $.01; authorized, issued and outstanding: 2017—6,899,700 shares and 2016—6,900,000 shares (liquidation preference $100 per share) | 690 | 690 |
Common shares, par value $.01; authorized—400,000,000 shares; issued and outstanding: 2017—140,646,829 shares, 2016—139,500,862 shares | 1 | 1 |
Additional paid-in capital | 5,226 | 5,143 |
Retained earnings | 8,081 | 8,208 |
Accumulated other comprehensive income (loss) (Note 23) | (5,930) | (5,978) |
Treasury shares, at cost—2017 and 2016—12,882,313 shares | (920) | (920) |
Total Bunge shareholders' equity | 7,148 | 7,144 |
Noncontrolling interests | 209 | 199 |
Total equity | 7,357 | 7,343 |
Total liabilities and equity | $ 18,871 | $ 19,188 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowances (in dollars) | $ 107 | $ 122 |
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Convertible perpetual preference shares, authorized | 6,899,700 | 6,900,000 |
Convertible perpetual preference shares, issued | 6,899,700 | 6,900,000 |
Convertible perpetual preference shares, outstanding | 6,899,700 | 6,900,000 |
Convertible perpetual preference shares, liquidation preference (in dollars per share) | $ 100 | $ 100 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized | 400,000,000 | 400,000,000 |
Common shares, issued | 140,646,829 | 139,500,862 |
Common shares, outstanding | 140,646,829 | 139,500,862 |
Treasury shares, at cost | 12,882,313 | 12,882,313 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | |||
Net income | $ 174 | $ 767 | $ 790 |
Adjustments to reconcile net income to cash provided by (used for) operating activities: | |||
Impairment charges | 52 | 87 | 57 |
Foreign currency loss (gain) on debt | 21 | 80 | (213) |
Gain on disposition of equity interests/subsidiaries and sale of assets | (9) | (122) | (47) |
Bad debt expense | 28 | 13 | 35 |
Depreciation, depletion and amortization | 609 | 547 | 545 |
Share-based compensation expense | 29 | 44 | 46 |
Deferred income tax expense (benefit) | (23) | 126 | 16 |
Other, net | 24 | 15 | (26) |
Changes in operating assets and liabilities, excluding the effects of acquisitions: | |||
Trade accounts receivable | 95 | (131) | (97) |
Inventories | (130) | (269) | 314 |
Secured advances to suppliers | 172 | 38 | (397) |
Trade accounts payable | 25 | 708 | (88) |
Advances on sales | 11 | 36 | 22 |
Net unrealized gain (loss) on derivative contracts | 105 | (84) | (16) |
Margin deposits | (5) | 199 | (154) |
Recoverable and income taxes, net | (78) | (178) | (36) |
Accrued liabilities | 25 | (148) | (7) |
Marketable Securities | (128) | 76 | (71) |
Other, net | 9 | 100 | (63) |
Cash provided by (used for) operating activities | 1,006 | 1,904 | 610 |
INVESTING ACTIVITIES | |||
Payments made for capital expenditures | (662) | (784) | (649) |
Acquisitions of businesses (net of cash acquired) | (369) | (34) | (347) |
Proceeds from investments | 961 | 802 | 295 |
Payments for investments | (944) | (553) | (235) |
Settlement of net investment hedges | (20) | (375) | 203 |
Proceeds from disposals of property, plant and equipment | 16 | 27 | 13 |
Proceeds from sale of grain assets in Canada and investments in affiliates | 0 | 0 | 88 |
Payments for investments in affiliates | (126) | (40) | (167) |
Other, net | (18) | 31 | (3) |
Cash provided by (used for) investing activities | (1,162) | (926) | (802) |
FINANCING ACTIVITIES | |||
Net change in short-term debt with maturities of 90 days or less | 18 | (206) | (176) |
Proceeds from short-term debt with maturities greater than 90 days | 248 | 428 | 713 |
Repayments of short-term debt with maturities greater than 90 days | (224) | (477) | (350) |
Proceeds from long-term debt | 9,054 | 10,396 | 9,354 |
Repayments of long-term debt | (9,010) | (10,080) | (8,659) |
Proceeds from the exercise of options for common shares | 59 | 0 | 25 |
Repurchases of common shares | 0 | (200) | (300) |
Dividends paid to preference shareholders | (34) | (34) | (34) |
Dividends paid to common shareholders | (247) | (223) | (207) |
Dividends paid to noncontrolling interests | (16) | (25) | (8) |
Capital contributions (return of capital) from noncontrolling interests, net | (5) | (10) | (13) |
Acquisition of noncontrolling interest | 0 | (39) | 0 |
Other, net | (23) | (18) | 15 |
Cash provided by (used for) financing activities | (180) | (488) | 360 |
Effect of exchange rate changes on cash and cash equivalents | 3 | 33 | (119) |
Net increase (decrease) in cash and cash equivalents | (333) | 523 | 49 |
Cash and cash equivalents, beginning of period | 934 | 411 | 362 |
Cash and cash equivalents, end of period | $ 601 | $ 934 | $ 411 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS - USD ($) $ in Millions | Total | Convertible Preference Shares | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Shares | Non- Controlling Interests | Redeemable Non- Controlling Interests |
Balance at Dec. 31, 2014 | $ 37 | ||||||||
Balance (in shares) at Dec. 31, 2014 | 6,900,000 | 145,703,198 | |||||||
Balance at Dec. 31, 2014 | $ 8,690 | $ 690 | $ 1 | $ 5,053 | $ 7,180 | $ (4,058) | $ (420) | $ 244 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | (14) | ||||||||
Net income (loss) | 790 | 791 | (1) | ||||||
Accretion of noncontrolling interests | (19) | (19) | 19 | ||||||
Other comprehensive income (loss) | (2,306) | (2,302) | (4) | (5) | |||||
Dividends on common shares | (212) | (212) | |||||||
Dividends on preference shares | (34) | (34) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (9) | (9) | |||||||
Return of capital to noncontrolling interests | (19) | (19) | |||||||
Share-based compensation expense | 46 | 46 | |||||||
Repurchase of common shares (in shares) | (3,871,810) | ||||||||
Repurchase of common shares | (300) | (300) | |||||||
Issuance of common shares (in shares) | 652,079 | ||||||||
Issuance of common shares | 25 | 25 | |||||||
Balance at Dec. 31, 2015 | 37 | ||||||||
Balance (in shares) at Dec. 31, 2015 | 6,900,000 | 142,483,467 | |||||||
Balance at Dec. 31, 2015 | 6,652 | $ 690 | $ 1 | 5,105 | 7,725 | (6,360) | (720) | 211 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | 1 | ||||||||
Net income (loss) | 767 | 745 | 22 | ||||||
Accretion of noncontrolling interests | (2) | (2) | 2 | ||||||
Other comprehensive income (loss) | 386 | 382 | 4 | (1) | |||||
Dividends on common shares | (228) | (228) | |||||||
Dividends on preference shares | (34) | (34) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (25) | (25) | |||||||
Noncontrolling decrease from redemption | (6) | (6) | |||||||
Acquisition of Noncontrolling interest | 17 | (2) | 19 | (39) | |||||
Deconsolidation of a subsidiary | (26) | (26) | |||||||
Share-based compensation expense | 44 | 44 | |||||||
Repurchase of common shares (in shares) | (3,296,230) | ||||||||
Repurchase of common shares | (200) | (200) | |||||||
Issuance of common shares (in shares) | 313,625 | ||||||||
Issuance of common shares | (2) | (2) | |||||||
Balance at Dec. 31, 2016 | 0 | ||||||||
Balance (in shares) at Dec. 31, 2016 | 6,900,000 | 139,500,862 | |||||||
Balance at Dec. 31, 2016 | 7,343 | $ 690 | $ 1 | 5,143 | 8,208 | (5,978) | (920) | 199 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income (loss) | |||||||||
Net income (loss) | 174 | 160 | 14 | ||||||
Accretion of noncontrolling interests | 0 | 0 | |||||||
Other comprehensive income (loss) | 64 | 48 | 16 | ||||||
Dividends on common shares | (253) | (253) | |||||||
Dividends on preference shares | (34) | (34) | |||||||
Dividends to noncontrolling interests on subsidiary common stock | (15) | (15) | |||||||
Noncontrolling decrease from redemption | (5) | (5) | |||||||
Acquisition of Noncontrolling interest | 0 | 0 | 0 | ||||||
Deconsolidation of a subsidiary | 0 | 0 | |||||||
Share-based compensation expense | 29 | 29 | |||||||
Repurchase of common shares (in shares) | 0 | ||||||||
Repurchase of common shares | 0 | 0 | |||||||
Issuance of common shares (in shares) | (300) | 1,145,967 | |||||||
Issuance of common shares | 54 | 54 | |||||||
Balance at Dec. 31, 2017 | $ 0 | ||||||||
Balance (in shares) at Dec. 31, 2017 | 6,899,700 | 140,646,829 | |||||||
Balance at Dec. 31, 2017 | $ 7,357 | $ 690 | $ 1 | $ 5,226 | $ 8,081 | $ (5,930) | $ (920) | $ 209 |
NATURE OF BUSINESS, BASIS OF PR
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES | NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES Description of Business —Bunge Limited, a Bermuda holding company, together with its consolidated subsidiaries and variable interest entities ("VIEs") in which it is considered the primary beneficiary, through which its businesses are conducted (collectively "Bunge" or "the Company"), is an integrated, global Agribusiness and Food company. Bunge's common shares trade on the New York Stock Exchange under the ticker symbol "BG." Bunge operates in four principal business areas, which include five reportable segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy and Fertilizer. Agribusiness —Bunge's Agribusiness segment is an integrated, global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products. Bunge's agribusiness operations and assets are located in North America, South America, Europe and Asia-Pacific with merchandising and distribution offices throughout the world. Bunge's Agribusiness segment also participates in related financial activities, such as offering trade structured finance, which leverages its international trade flows, providing risk management services to customers by assisting them with managing price exposure to agricultural commodities, proprietary trading of foreign exchange and other financial instruments and developing private investment vehicles to invest in businesses complementary to Bunge's commodities operations. Edible Oil products —Bunge's Edible Oil Products segment produces and sells edible oil products, such as packaged and bulk oils, shortenings, margarine, mayonnaise and other products derived from the vegetable oil refining process. Bunge's edible oil products operations are located in North America, South America, Europe and Asia-Pacific. Milling products —Bunge's Milling Products segment includes wheat, corn and rice milling businesses, which purchase wheat, corn and rice directly from farmers and dealers and process them into milled products for food processors, bakeries, brewers, snack food producers and other customers. Bunge's wheat milling activities are primarily in Mexico and Brazil. Corn and rice milling activities are in the United States and Mexico. Sugar and Bioenergy —Bunge's Sugar and Bioenergy segment includes its global sugar merchandising and distribution activities, sugar and ethanol production in Brazil, and ethanol production investments. This segment is an integrated business involved in the growing and harvesting of sugarcane primarily from land managed through agricultural partnership agreements and additional sourcing of sugarcane from third parties to be processed at its eight mills in Brazil to produce sugar, ethanol and electricity. The Sugar and Bioenergy segment is also a merchandiser and distributor of sugar and ethanol within Brazil and a global merchandiser and distributor of sugar through its global trading offices. In addition, the segment includes investments in corn-based ethanol producers in the United States and Argentina. Fertilizer —Bunge's Fertilizer segment operates in Argentina, Uruguay and Paraguay, where we produce, blend and distribute a range of liquid and dry NPK fertilizers, including nitrogen-based liquid and solid phosphate fertilizers. Our operations in Argentina are closely linked to our grain origination activities as we supply fertilizer to producers who supply us with grain. This segment also includes port operations in Brazil and Argentina. Basis of Presentation —The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Discontinued Operations —In determining whether a disposal group should be presented as discontinued operations, Bunge makes a determination of whether such a group being disposed of comprises a component of the entity, or a group of components of the entity, that represents a strategic shift that has, or will have, a major effect on the Company's operations and financial results. If these determinations are made affirmatively, the results of operations of the group being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from the continuing operations of the Company for all periods presented in the consolidated financial statements. Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Bunge, its subsidiaries and VIEs in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge exercises control. Equity investments in which Bunge has the ability to exercise significant influence but does not control are accounted for by the equity method of accounting. Investments in which Bunge does not exercise significant influence are accounted for by the cost method of accounting. Intercompany accounts and transactions are eliminated. Bunge consolidates VIEs in which it is considered to be the primary beneficiary and reconsiders such conclusion at each reporting period. An enterprise is determined to be the primary beneficiary if it has a controlling financial interest under U.S. GAAP, defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's business and (b) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE's operations. Performance of that analysis requires the exercise of judgment. Noncontrolling interests in subsidiaries related to Bunge's ownership interests of less than 100% are reported as noncontrolling interests in the consolidated balance sheets. The noncontrolling ownership interests in Bunge's earnings, net of tax, is reported as net (income) loss attributable to noncontrolling interests in the consolidated statements of income. Reclassifications —Certain prior year amounts have been reclassified to conform to current year presentation. Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires the application of accounting policies that often require management to make substantial judgment or estimation in their application. These judgments and estimations may significantly affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. They may also affect reported amounts of revenues and expenses. Actual results could differ from those estimates. Translation of Foreign Currency Financial Statements —Bunge's reporting currency is the U.S. dollar. The functional currency of the majority of Bunge's foreign subsidiaries is their local currency and, as such, amounts included in the consolidated statements of income, comprehensive income (loss), cash flows and changes in equity are translated using average exchange rates during each period. Assets and liabilities are translated at period-end exchange rates and resulting foreign currency translation adjustments are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). Foreign Currency Transactions —Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into their respective functional currencies at exchange rates in effect at the balance sheet date. The resulting exchange gain or loss is included in Bunge's consolidated statements of income as foreign exchange gain (loss) unless the remeasurement gain or loss relates to an intercompany transaction that is of a long-term investment nature and for which settlement is not planned or anticipated in the foreseeable future. Gains or losses arising from translation of such transactions are reported as a component of accumulated other comprehensive income (loss) in Bunge's consolidated balance sheets. Cash and Cash Equivalents —Cash and cash equivalents include time deposits and readily marketable securities with original maturity dates of three months or less at the time of acquisition. Trade Accounts Receivable and Secured Advances to Suppliers —Trade accounts receivable and secured advances to suppliers are stated at their historical carrying amounts net of write-offs and allowances for uncollectible accounts. Bunge establishes an allowance for uncollectible trade accounts receivable and secured advances to farmers based on historical experience, farming economics and other market conditions as well as specific customer collection issues. Uncollectible accounts are written off when a settlement is reached for an amount below the outstanding historical balance or when Bunge has determined that collection is unlikely. Secured advances to suppliers bear interest at contractual rates which reflect current market interest rates at the time of the transaction. There are no deferred fees or costs associated with these receivables. As a result, there are no imputed interest amounts to be amortized under the interest method. Interest income is calculated based on the terms of the individual agreements and is recognized on an accrual basis. Bunge follows accounting guidance on the disclosure of the credit quality of financing receivables and the allowance for credit losses, which requires information to be disclosed at disaggregated levels, defined as portfolio segments and classes. Under this guidance, a class of receivables is considered impaired, based on current information and events, if Bunge determines it probable that all amounts due under the original terms of the receivable will not be collected. Recognition of interest income is suspended once the farmer defaults on the originally scheduled delivery of agricultural commodities as the collection of future income is determined not to be probable. No additional interest income is accrued from the point of default until ultimate recovery, at which time amounts collected are credited first against the receivable and then to any unrecognized interest income. Inventories —Readily marketable inventories ("RMI") are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. All of Bunge's RMI are valued at fair value. These agricultural commodity inventories have quoted market prices in active markets, may be sold without significant further processing, and have predictable and insignificant disposal costs. Changes in the fair values of RMI are recognized in earnings as a component of cost of goods sold. Inventories other than RMI are stated at the lower of cost or market by inventory product class. Cost is determined using primarily the weighted-average cost method. Derivative Instruments and Hedging Activities —Bunge enters into derivative instruments to manage its exposure to movements associated with agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates, and energy costs. Bunge's use of these instruments is generally intended to mitigate the exposure to market variables (see Note 15). Generally, derivative instruments are recorded at fair value in other current assets or other current liabilities in Bunge's consolidated balance sheets. Bunge assesses at the inception of a hedge whether any derivatives designated as hedges are highly effective in offsetting changes in the hedged items and, on an ongoing basis, qualitatively monitors whether that assertion is still met. The changes in fair values of derivative instruments designated as fair value hedges, along with the gains or losses on the related hedged items are recorded in earnings in the consolidated statements of income in the same caption as the hedged items. The changes in fair values of derivative instruments that are designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are reclassified to earnings when the hedged cash flows affect earnings or when the hedge is no longer considered to be effective. In addition, Bunge may designate certain derivative instruments and nonderivative instruments as net investment hedges to hedge the exposure associated with its equity investments in foreign operations. When using forward derivative contracts as hedging instruments in a net investment hedge, all changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) in the consolidated balance sheets. Marketable Securities and Other Short-Term Investments —Bunge classifies its marketable securities and short-term investments as available-for-sale, held-to-maturity or trading. Available-for-sale securities are reported at fair value with unrealized gains (losses) included in accumulated other comprehensive income (loss). Held-to-maturity investments represent financial assets in which Bunge has the intent and ability to hold to maturity. Trading securities are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Bunge values its marketable securities at fair value and monitors its held-to-maturity investments for impairment periodically, and recognizes an impairment charge when the decline in fair value of an investment is judged to be other than temporary. Recoverable Taxes —Recoverable taxes include value-added taxes paid upon the acquisition of raw materials and taxable services and other transactional taxes, which can be recovered in cash or as compensation against income taxes or other taxes owed by Bunge, primarily in Brazil and Europe. These recoverable tax payments are included in other current assets or other non-current assets based on their expected realization. In cases where Bunge determines that recovery is doubtful, recoverable taxes are reduced by allowances for the estimated unrecoverable amounts. Property, Plant and Equipment, Net —Property, plant and equipment, net is stated at cost less accumulated depreciation and depletion. Major improvements that extend the life, capacity or efficiency or improve the safety of an asset are capitalized, while maintenance and repairs are expensed as incurred. Costs related to legal obligations associated with the future retirement of capitalized assets are capitalized as part of the cost of the related asset. Bunge generally capitalizes eligible costs to acquire or develop internal-use software that are incurred during the application development stage. Interest costs on borrowings during construction/completion periods of major capital projects are also capitalized. Depreciation is computed based on the straight-line method over the estimated useful lives of the assets. Useful lives for property, plant and equipment are as follows: Years Biological assets 5 - 7 Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 Computer software 3 - 10 Included in property, plant and equipment are biological assets, primarily sugarcane, that are stated at cost less accumulated depletion. Depletion is calculated using the estimated units of production based on the remaining useful life of the growing sugarcane. Goodwill —Goodwill represents the cost in excess of the fair value of net assets acquired in a business acquisition. Goodwill is not amortized but is tested annually for impairment or between annual tests if events or circumstances indicate potential impairment. Bunge's annual impairment testing is generally performed during the fourth quarter of its fiscal year. Goodwill is tested for impairment at the reporting unit level, which has been determined to be the Company's operating segments or one level below the operating segments in certain instances (see Note 8). Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets —Finite lived intangible assets include primarily trademarks, customer lists, and port facility usage rights and are amortized on a straight-line basis over their contractual or legal lives (see Note 9) or their estimated useful lives where such lives are not determined by law or contract. Bunge reviews its property, plant and equipment and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Bunge bases its evaluation of recoverability on such indicators as the nature, future economic benefits, and geographic locations of the assets, historical or future profitability measures, and other external market conditions. If these indicators result in the expected non-recoverability of the carrying amount of an asset or asset group, Bunge evaluates potential impairment using undiscounted estimated future cash flows. If such undiscounted future cash flows during the asset's remaining useful life are below its carrying value, a loss is recognized for the shortfall, measured by the present value of the estimated future cash flows or by third-party appraisals. Bunge records impairments related to property, plant and equipment and finite-lived intangible assets used in the processing of its products in cost of goods sold in its consolidated statements of income. Any impairment of marketing or brand assets is recognized in selling, general and administrative expenses in the consolidated statements of income (see Note 10). Property, plant and equipment and other finite-lived intangible assets to be sold or otherwise disposed of are reported at the lower of carrying amount or fair value less cost to sell. Impairment of Investments in Affiliates —Bunge reviews its investments annually or when an event or circumstances indicate that a potential decline in value may be other than temporary. Bunge considers various factors in determining whether to recognize an impairment charge, including the length of time that the fair value of the investment is expected to be below its carrying value, the financial condition, operating performance and near-term prospects of the affiliate and Bunge's intent and ability to hold the investment for a period of time sufficient to allow for recovery of the fair value. (see Note 10 and 11). Share-Based Compensation —Bunge maintains equity incentive plans for its employees and non-employee directors (see Note 25). Bunge accounts for share-based compensation based on the grant date fair value. Share-based compensation expense is recognized on a straight-line basis over the requisite service period. Income Taxes —Income tax expenses and benefits are recognized based on the tax laws and regulations in the jurisdictions in which Bunge's subsidiaries operate. Under Bermuda law, Bunge is not required to pay taxes in Bermuda on either income or capital gains. The provision for income taxes includes income taxes currently payable and deferred income taxes arising as a result of temporary differences between the carrying amounts of existing assets and liabilities in Bunge's financial statements and their respective tax bases. Deferred tax assets are reduced by valuation allowances if current evidence does not suggest that the deferred tax asset will be realized. Accrued interest and penalties related to unrecognized tax benefits are recognized in income tax (expense) benefit in the consolidated statements of income (see Note 14). The calculation of tax liabilities involves management's judgments concerning uncertainties in the application of complex tax regulations in the many jurisdictions in which Bunge operates. Investment tax credits are recorded in income tax expense in the period in which such credits are granted. Revenue Recognition —Sales of agricultural commodities, fertilizers and other products are recognized when persuasive evidence of an arrangement exists, the price is determinable, the product has been delivered, title to the product and risk of loss transfer to the customer, which is dependent on the agreed upon sales terms with the customer and when collection of the sale price is reasonably assured. Sales terms provide for passage of title either at the time and point of shipment or at the time and point of delivery of the product being sold. Net sales consist of gross sales less discounts related to promotional programs and sales taxes. Interest income on secured advances to suppliers is included in net sales due to its operational nature (see Note 6). Shipping and handling charges billed to customers are included in net sales and related costs are included in cost of goods sold. Research and Development —Research and development costs are expensed as incurred. Research and development expenses were $20 million , $17 million and $16 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. New Accounting Pronouncements —In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services. Topic 853 provides guidance for operating entities when they enter into a service concession arrangement with a public-sector grantor who both: • Controls or has the ability to modify or approve the services to be provided with the infrastructure and the related price • Controls, through ownership, beneficial entitlement, or otherwise, any residual interest in the infrastructure at the end of the term of the arrangement. In a service concession arrangement within the scope of Topic 853, the operating entity should not account for the infrastructure as a lease or as property, plant, and equipment. An operating entity should refer to other Topics to account for various aspects of a service concession arrangement. For example, an operating entity should account for revenue relating to construction, upgrade, or operation services in accordance with Topic 606, Revenue from Contracts with Customers . The amendments in this ASU apply to the accounting by operating entities for service concession arrangements within the scope of Topic 853. These updates will be effective when Bunge adopts the updates to Topic 606 on January 1, 2018. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) : Scope of Modification Accounting . The new guidance requires an entity to apply modification accounting to share-based payment awards only if the fair value, vesting conditions, or classification of the award as equity or liability changes as a result of a change in terms or conditions of the award. The amendments in this ASU are effective for Bunge starting January 1, 2018. The amendments in the ASU should be applied prospectively to an award modified on or after the adoption date. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which changes the presentation of net periodic benefit cost related to employer sponsored defined benefit plans and other postretirement benefits. Service cost should be included in the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost should be presented separately outside of operating income. Additionally, only service costs may be capitalized in assets. The standard is effective for Bunge starting January 1, 2018. Entities should apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component should be applied prospectively. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The new guidance clarifies the scope of Subtopic 610-20 on the sale or transfer of nonfinancial assets to noncustomers, including partial sales. The standard is effective for Bunge starting January 1, 2018. The new requirements may be implemented either retrospectively to each period presented in the financial statements, or retrospectively with a cumulative-effect adjustment to retained earnings at the date of initial application. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The new guidance eliminates Step 2 from the goodwill impairment test. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The standard is effective for annual or interim impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The new requirements should be implemented on a prospective basis. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendments provide that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. Otherwise, to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The standard is effective for Bunge starting January 1, 2018. The new requirements should be implemented on a prospective basis. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the Emerging Issues Task Force) . Similar to ASU 2016-15 as described below, this update attempts to reduce diversity in practice and provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. The guidance will be effective for Bunge starting January 1, 2018. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory, which eliminates an exception in the current guidance prohibiting a reporting entity to recognize income taxes consequences of an intra-entity transfer of an asset other than inventory, such as transfers of intellectual property and property, plant, and equipment, until the asset has been sold to an outside party. The new guidance does not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer. ASU 2016-16 will be effective for Bunge starting January 1, 2018. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). This update attempts to reduce diversity in practice by providing guidance on the classification of certain cash receipts and payments in the statement of cash flows. The new standard is effective for Bunge starting January 1, 2018. The most significant change upon adoption of this standard is expected to be the presentation of cash flows in relation to the Company’s trade receivables securitization program. Particularly impacted are the cash receipts from payments on the deferred purchase price, which will be classified as cash inflows from investing activities, whereas today they are classified as inflows from operating activities. The deferred purchase price is generally between 10% and 15% of receivables sold. See Note 18 for additional information on our trade receivables securitization program. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) , which introduces a new accounting model, referred to as the current expected credit losses (CECL) model, for estimating credit losses on certain financial instruments and expands the disclosure requirements for estimating such credit losses. Under the new model, an entity is required to estimate the credit losses expected over the life of an exposure (or pool of exposures). The guidance also amends the current impairment model for debt securities classified as available-for-sale securities. The new guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under the new provisions, all lessees will report on the balance sheet a right-of-use asset and a liability for the obligation to make payments with the exception of those leases with a term of 12 months or less. The new provisions will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Bunge has established a project implementation group and is evaluating the impact this guidance will have on its consolidated financial statements and related disclosures. Initial scoping reviews are underway, along with planning of the implementation of a new system to perform the reporting and disclosure are underway. The Company is evaluating the change to existing processes and controls. In January 2016, the FASB issued ASU 2016-01, Financial Instruments -Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which amends the guidance relating to the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The new standard is effective for Bunge starting January 1, 2018. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In May 2014, the FASB amended ASC (Topic 605) Revenue Recognition and created ASC (Topic 606): Revenue from Contracts with Customers . The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. During 2016, the FASB issued additional implementation guidance and practical expedients in ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing , ASU 2016-12, Revenue from Contracts with Customers (Topic 606) : Narrow-Scope Improvements and Practical Expedients , and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , to improve the guidance. The Company adopted the standard on January 1, 2018 under |
GLOBAL COMPETITIVENESS PROGRAM
GLOBAL COMPETITIVENESS PROGRAM | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
GLOBAL COMPETITIVENESS PROGRAM | GLOBAL COMPETITIVENESS PROGRAM In July 2017, Bunge announced a comprehensive global competitiveness program to improve its cost position and deliver increased value to shareholders (the “Global Competitiveness Program”). When fully implemented, the Global Competitiveness Program is expected to reduce the Company’s overhead costs by approximately $250 million by the end of 2020. The Company identified key elements of its strategy to meet this goal, including adopting a zero-based budgeting process that will target excess costs in specific budget categories and improving efficiency and scalability by simplifying organizational structures, streamlining processes and consolidating back office functions globally. In conjunction with the Global Competitiveness Program, the Company has implemented other cost reduction and strategic initiatives to enhance the efficiency and performance of the Company’s business. The Company has approved several initiatives under the Global Competitiveness Program, including position eliminations, the re-leveling of certain positions, simplifying its organizational structure into three regions and establishing new zero-based budgeting procedures and governance on spending categories. As part of the Global Competitiveness Program, Bunge offered a voluntary early retirement program to certain U.S. based salaried employees. Costs associated with the early retirement program are reflected in severance and other employee benefit costs. In addition, the Company has also incurred third-party consulting fees and other costs associated with the Global Competitiveness Program. The table below sets forth, by type and segment, the costs recorded for the Global Competitiveness Program and other associated initiatives during the year ended December 31, 2017 : (US$ in millions) Severance and Other Employee Benefit Costs Other Program Costs Total Program Costs Agribusiness Segment $ 39 $ 10 $ 49 Edible Oils Segment 12 4 16 Milling Segment 6 1 7 Sugar and Bioenergy Segment 1 3 4 Fertilizer Segment 1 — 1 Total $ 59 $ 18 $ 77 In addition to the above charges, $13 million of severance and other employee benefit costs were recorded related to other industrial productivity initiatives. For the costs recorded above, $35 million were recorded in Cost of goods sold and $55 million were recorded in Selling, general and administrative expenses. Bunge's liability associated with the Global Competitiveness Program and other associated initiatives is primarily comprised of accruals for severance and other employee benefit costs. The following table sets forth the activity affecting the liability for severance and other employee benefit costs related to the Global Competitiveness Program and other associated initiatives, which is recorded in "Other current liabilities" on the consolidated balance sheet. (US$ in millions) Severance and Other Employee Benefit Costs Balance at December 31, 2016 $ — Charges incurred 72 Cash payments (17 ) Pension liability (1) (10 ) Balance at December 31, 2017 $ 45 (1) Included in severance and other employee benefit costs is approximately $10 million of additional pension expense incurred as part of the voluntary early retirement program. This amount is accrued with the total Bunge pension liability in "Other noncurrent liabilities" in the consolidated balance sheet. In addition to the cash charges described above, the Company's restructuring initiatives may include the sale or disposal of long-lived assets and rationalization of certain investments. As Bunge continues to review its opportunities, certain charges may be recorded in earnings, including charges related to the disposal of assets or investments. For the year ended December 31, 2017 , $45 million of such charges have been incurred. See Note 10 for additional details of these and other impairment charges. |
BUSINESS ACQUISITIONS AND DISPO
BUSINESS ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS AND DISPOSITIONS | BUSINESS ACQUISITIONS AND DISPOSTIONS Acquisitions On September 12, 2017, Bunge announced that it entered into a definitive agreement to acquire a 70% ownership interest in IOI Loders Croklaan ("Loders") from IOI Corporation Berhad ("IOI") for approximately $965 million , comprising €297 million and $595 million in cash. The transaction expands Bunge's value-added capabilities, reach, and scale across core geographies to establish Bunge as a global leader in B2B oil solutions. Loders' portfolio includes a full range of palm and tropical oil-derived products with strength in confectionery, bakery and infant nutrition applications. Loders serves global food industry customers in more than 100 countries around the world. The transaction is expected to close in the first quarter of 2018, subject to customary closing conditions. On November 17, 2017, Bunge announced that it has reached an agreement with Grupo Minsa S.A.B. de C.V. ("Minsa"), a leading corn flour producer in North America, terminating the original agreement announced in August 2016 under which Bunge would have acquired a controlling interest in Minsa for approximately $311 million . Bunge and Minsa have terminated all obligations under the original agreement and signed mutual agreements releasing them from any associated liabilities. Subsequently, on January 30, 2018, Bunge acquired Minsa Corporation ("Minsa USA"), a wholly owned subsidiary of Minsa, for approximately $75 million . As a result of the transaction, Bunge acquired two corn mills in the United States. On February 28, 2017, Bunge acquired two oilseed processing plants and related operations in the Netherlands and France pursuant to an agreement with Cargill, Inc. Bunge paid a total purchase price of approximately $322 million . The purchase price allocation resulted in $109 million allocated to property, plant and equipment, $103 million to other net assets and liabilities and $7 million to finite-lived intangible assets. The transaction also resulted in $103 million of goodwill allocated to Bunge’s agribusiness operations. Dispositions On November 30, 2016, Bunge closed on the disposition of a 50% ownership interest in its Terfron port terminal Terminal Fronteira Norte Logistica S.A. ("TFN") in Brazil to Amaggi Exportaçao E Importaçao Ltda. for a total consideration in cash of approximately $145 million , which resulted in a gain of $90 million . As a result of this transaction Bunge will account for its remaining 50% interest in the TFN joint venture as an equity method investment. On November 30, 2016, Bunge and Wilmar International Limited ("Wilmar") completed the formation of a joint venture in Vietnam in which Wilmar will invest into Bunge's crush operations in Vietnam, creating a three-party joint venture with Bunge and Wilmar as equal 45% shareholders and Quang Dung, a leading soybean meal distributor in Vietnam, retaining its existing 10% stake in the operations. Bunge received $33 million cash in consideration for its 45% share of interest in Bunge's crush operations. This transaction resulted in a gain of $30 million . As a result of this transaction Bunge will account for the joint venture as an equity method investment. On February 1, 2016, SALIC Canada Limited ("SALIC Canada") converted two non-interest bearing convertible promissory notes issued to SALIC by G3 of $106 million into 148,323,000 common shares of G3, increasing SALIC Canada's ownership percentage in G3 from 49% to 65% and reducing Bunge Canada's ownership in G3 from 51% to 35% . On the same day, Bunge Canada and SALIC Canada transferred all of their common shares of G3 to G3 Global Holdings Limited Partnership in exchange for additional Class A limited partnership units in G3 Global Holdings Limited Partnership. As a result, as of February 1, 2016, G3 Global Holdings Limited Partnership became the holder of all of the issued and outstanding common shares in G3. On March 30, 2016, Bunge Canada, under the G3 Global Holdings Shareholders Agreement, exercised a contractual put right and sold 10% of its common shares to SALIC Canada in exchange for $37 million so that Bunge Canada now holds 25% ownership of G3 Global Holdings Limited Partnership and SALIC Canada holds 75% ownership. |
TRADE STRUCTURED FINANCE PROGRA
TRADE STRUCTURED FINANCE PROGRAM | 12 Months Ended |
Dec. 31, 2017 | |
Trade Structured Finance Program [Abstract] | |
TRADE STRUCTURED FINANCE PROGRAM | TRADE STRUCTURED FINANCE PROGRAM Bunge engages in various trade structured finance activities to leverage the value of its trade flows across its operating regions. For the years ended December 31, 2017 and 2016 , net return from these activities were $33 million and $57 million , respectively, and were included as a reduction of cost of goods sold in the accompanying consolidated statements of income. These activities include programs under which Bunge generally obtains U.S. dollar-denominated letters of credit (“LCs”) (each based on an underlying commodity trade flow) from financial institutions and time deposits denominated in either the local currency of the financial institutions' counterparties or in U.S. dollars, as well as foreign exchange forward contracts, and other programs in which trade related payables are set-off against receivables, all of which are subject to legally enforceable set-off agreements. The table below summarizes the assets and liabilities included in the consolidated balance sheets and the associated fair value amounts at December 31, 2017 and December 31, 2016 , related to the program. The fair values approximated the carrying amount of the related financial instruments and are all Level 2 measurements (see Note 15). December 31, (US$ in millions) 2017 2016 Current assets: Carrying value of time deposits $ — $ 64 Non-current assets: Carrying value of time deposits $ 315 $ 464 Current liabilities: Carrying value of letters of credit obligations $ 315 $ 528 As of December 31, 2017 and 2016 , receivables and trade payables of $1,196 million and nil , respectively, and time deposits and LCs of $6,321 million and $5,732 million , respectively, were presented net on the consolidated balance sheets as the criteria of ASC 210-20, Offsetting , had been met. At December 31, 2017 and 2016 , time deposits, including those presented on a net basis, carried weighted-average interest rates of 2.98% and 2.36% , respectively. During the years ended December 31, 2017 , 2016 and 2015 , total net proceeds from issuances of LCs were $8,174 million , $7,191 million and $5,563 million , respectively. These cash inflows are offset by the related cash outflows resulting from placement of the time deposits and repayment of the LCs. All cash flows related to the programs are included in operating activities in the consolidated statements of cash flows. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories by segment are presented below. RMI are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat, carried at fair value because of their commodity characteristics, widely available markets and international pricing mechanisms. All other inventories are carried at lower of cost or net realizable value. December 31, (US$ in millions) 2017 2016 Agribusiness (1) $ 4,022 $ 3,741 Edible Oil Products (2) 458 404 Milling Products 196 167 Sugar and Bioenergy (3) 333 406 Fertilizer 65 55 Total $ 5,074 $ 4,773 (1) Includes RMI of $3,865 million and $3,593 million at December 31, 2017 and 2016 , respectively. Of these amounts $2,694 million and $2,523 million can be attributable to merchandising activities at December 31, 2017 and 2016 , respectively. (2) Includes RMI of bulk soybean and canola oil in the aggregate amount of $115 million and $123 million at December 31, 2017 and 2016 , respectively. (3) Includes sugar RMI of $76 million and $139 million at December 31, 2017 and 2016 , respectively. Of these amounts, $73 million and $134 million can be attributable to merchandising activities at December 31, 2017 and 2016 , respectively. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS Other current assets consist of the following: December 31, (US$ in millions) 2017 2016 Unrealized gains on derivative contracts, at fair value $ 910 $ 1,327 Prepaid commodity purchase contracts (1) 282 273 Secured advances to suppliers, net (2) 412 601 Recoverable taxes, net 488 467 Margin deposits 258 251 Marketable securities, at fair value and other short-term investments 213 94 Deferred purchase price receivable, at fair value (3) 107 87 Income taxes receivable 192 181 Prepaid expenses 125 148 Other 240 216 Total $ 3,227 $ 3,645 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers' production costs. Bunge does not bear any of the costs or operational risks associated with the related growing crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $1 million and $1 million at December 31, 2017 and December 31, 2016 , respectively. Interest earned on secured advances to suppliers of $44 million , $38 million and $38 million , for the years ended December 31, 2017 , 2016 and 2015 , respectively, is included in net sales in the consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge's accounts receivables sales program (see Note 18). Marketable Securities and Other Short-Term Investments —The Company invests in foreign government securities, corporate debt securities, deposits, and other securities. The following is a summary of amounts recorded on the consolidated balance sheets for marketable securities and other short-term investments. December 31, (US$ in millions) 2017 2016 Foreign government securities $ 145 $ 28 Corporate debt securities 59 57 Certificate of deposits/time deposits — 7 Other 9 2 Total marketable securities and other short-term investments $ 213 $ 94 As of December 31, 2017 , total marketable securities and other short-term investments includes $3 million of assets classified as available for sale, $209 million as trading, and $1 million as other short-term investments. As of December 31, 2016 , total marketable securities and other short-term investments includes $22 million of assets classified as available for sale, $63 million , as trading and $9 million as other short-term investments. Due to the short-term nature of these investments, carrying value approximates fair value. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: December 31, (US$ in millions) 2017 2016 Land $ 390 $ 356 Biological assets 709 613 Buildings 2,116 1,934 Machinery and equipment 5,601 5,055 Furniture, fixtures and other 579 514 Construction in progress 517 765 9,912 9,237 Less: accumulated depreciation and depletion (4,602 ) (4,138 ) Total $ 5,310 $ 5,099 Bunge capitalized expenditures of $633 million , $810 million , and $592 million during the years ended 2017 , 2016 and 2015 , respectively. Included in these capitalized expenditures was capitalized interest on construction in progress of $6 million , $9 million , and $7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Depreciation and depletion expense was $580 million , $517 million and $518 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Bunge performs its annual goodwill impairment testing in the fourth quarter of each year. Step 1 of the goodwill impairment test compares the fair value of Bunge's reporting units to which goodwill has been allocated to the carrying values of those reporting units. The fair value of certain reporting units is determined using a combination of two methods: estimates based on market earnings multiples of peer companies identified for the reporting unit (the market approach) and a discounted cash flow model with estimates of future cash flows based on internal forecasts of revenues and expenses (the income approach). The market multiples are generally derived from public information related to comparable companies with operating and investing characteristics similar to those reporting units and from market transactions in the industry. The income approach estimates fair value by discounting a reporting unit's estimated future cash flows using a weighted-average cost of capital that reflects current market conditions and the risk profile of the respective business unit and includes, among other things, assumptions about variables such as commodity prices, crop and related throughput and production volumes, profitability, future capital expenditures and discount rates, all of which are subject to a high degree of judgment. For other reporting units, the estimated fair value of the reporting unit is determined utilizing a discounted cash flow analysis. Changes in the carrying value of goodwill by segment for the years ended December 31, 2017 and 2016 are as follows: (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Goodwill, gross of impairments 123 78 234 514 1 950 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2015, net 121 65 231 — 1 418 Goodwill acquired — 13 — — — 13 Measurement period adjustments — — (76 ) — — (76 ) Tax benefit on goodwill amortization (1) (3 ) — — — — (3 ) Foreign currency translation 8 — 13 — — 21 Goodwill, gross of impairments 128 91 171 514 1 905 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2016, net 126 78 168 — 1 373 Goodwill acquired (2) 103 8 — — — 111 Foreign currency translation 22 8 1 — — 31 Goodwill, gross of impairments 253 107 172 514 1 1,047 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2017, net $ 251 $ 94 $ 169 $ — $ 1 $ 515 (1) Bunge's Brazilian subsidiary's tax deductible goodwill is in excess of its book goodwill. For financial reporting purposes for goodwill acquired prior to 2009, the tax benefits attributable to the excess tax goodwill are first used to reduce associated goodwill to zero , prior to recognizing any income tax benefit in the consolidated statements of income. (2) Agribusiness goodwill relates to the 2017 acquisition of two oilseed processing plants and related operations in the Netherlands and France pursuant to an agreement with Cargill. |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
OTHER INTANGIBLE ASSETS | OTHER INTANGIBLE ASSETS Other intangible assets consist of the following: December 31, (US$ in millions) 2017 2016 Gross carrying amount: Trademarks/brands, finite-lived $ 173 $ 141 Licenses 8 7 Port rights 155 156 Other 237 254 573 558 Less accumulated amortization: Trademarks/brands, finite-lived (72 ) (64 ) Licenses (5 ) (5 ) Port rights (31 ) (23 ) Other (142 ) (130 ) (250 ) (222 ) Intangible assets, net of accumulated amortization $ 323 $ 336 In 2017 , Bunge acquired $21 million of brands and trademarks and $11 million of other intangible assets. Bunge allocated $24 million to the Edible Oils segment and $8 million to the Agribusiness segment. Finite lives of these intangibles range from 3 to 27 years. In 2016 , Bunge acquired $9 million of port rights, $4 million of brands and trademarks, and $8 million other intangible assets. Bunge allocated $12 million to the Edible Oils segment and $9 million to the Agribusiness segment. Finite lives of these intangibles range from 10 to 27 years. Aggregate amortization expense was $29 million , $31 million and $27 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The estimated annual future aggregate amortization expense is $27 million for 2018 through 2022. |
IMPAIRMENTS
IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2017 | |
IMPAIRMENTS | |
IMPAIRMENTS | IMPAIRMENTS For the year ended December 31, 2017 , Bunge recorded pre-tax, impairment charges of $52 million , of which $19 million , $16 million and $17 million are in selling, general and administrative expenses, cost of goods sold and other income (expense)—net, respectively, in its consolidated statement of income. These amounts are primarily made up of $25 million relating to the impairment of property, plant and equipment of feedmills in China, a port in Poland and various machinery and equipment in Brazil primarily in the Agribusiness segment, $17 million that relates to the impairment of two investments in affiliates in the Agribusiness and Sugar and Bioenergy segments, and $7 million that relates to an intangible asset impairment of patents. The remaining impairment amounts recorded by Bunge for the year ended December 31, 2017 were individually insignificant. The fair values of the assets were determined utilizing discounted future expected cash flows, offers from prospective buyers and market and income valuation approaches. For the year ended December 31, 2016 , Bunge recorded pre-tax, impairment charges of $87 million , of which $9 million , $6 million and $72 million are in cost of goods sold, selling, general and administrative expenses and other income (expense)—net, respectively, in its consolidated statement of income. These amounts are primarily made up of $44 million that relates to the impairment of an investment in affiliate and other investments in the Sugar and Bioenergy segment, $15 million that relates to the impairment of an investment in affiliate in the Agribusiness segment, $12 million that relates to an intangible asset impairment of aquaculture patents and $9 million that relates to a property, plant and equipment impairment of an Argentina fertilizer plant. The remaining impairment amounts recorded by Bunge for the year ended December 31, 2016 were individually insignificant. The fair values of the assets were determined utilizing discounted future expected cash flows, and in the case of the equity method investment, net market value based on broker quotes of similar assets. For the year ended December 31, 2015 , Bunge recorded pre-tax, non-cash impairment charges of $57 million , of which $24 million , $20 million and $13 million are included in cost of goods sold, selling, general and administrative expenses and other income (expense)—net, respectively, in its consolidated statement of income. These amounts are primarily made up of $15 million relating to the announced closure of an oil packaging plant in the United States, $14 million that relates to the impairment of an equity method investment in a freight shipping company in Europe and $13 million that relates to a pre-tax goodwill impairment charge related to the tomato products business in Brazil. The remaining impairment amounts recorded by Bunge for the year ended December 31, 2015 were individually insignificant. The fair values of the assets were determined utilizing discounted future expected cash flows, and in the case of the equity method investment, net market value based on broker quotes of similar assets. Nonrecurring fair value measurements —The following table summarizes assets measured at fair value on a nonrecurring basis subsequent to initial recognition at December 31, 2017 , 2016 and 2015 , respectively. For additional information on Level 1, 2 and 3 inputs see Note 15. (US$ in millions) Fair Value December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Impairment Losses Property, plant and equipment $ 16 $ — $ 16 $ — $ (25 ) Investment in affiliates $ — $ — $ — $ — $ (17 ) Intangibles $ — $ — $ — $ — $ (7 ) Other current assets $ — $ — $ — $ — $ (2 ) Other non-current assets $ 1 $ — $ 1 $ — $ — Fair Value December 31, 2016 Carrying Value Level 1 Level 2 Level 3 Impairment Losses Property, plant and equipment $ 7 $ — $ — $ 7 $ (9 ) Intangibles $ — $ — $ — $ — $ (12 ) Investment in affiliates and other investments $ 13 $ — $ — $ 13 $ (59 ) Fair Value December 31, 2015 Carrying Value Level 1 Level 2 Level 3 Impairment Losses Property, plant and equipment $ 12 $ — $ — $ 12 $ (15 ) Goodwill (see Note 8) $ — $ — $ — $ — $ (13 ) Investments in affiliates $ 3 $ — $ — $ 3 $ (14 ) |
INVESTMENTS IN AFFILIATES
INVESTMENTS IN AFFILIATES | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN AFFILIATES | INVESTMENTS IN AFFILIATES Bunge participates in various unconsolidated joint ventures and other investments accounted for using the equity method. Certain equity method investments at December 31, 2017 are described below. Bunge allocates equity in earnings of affiliates to its reporting segments. Agribusiness Agricola Alvorada S.A —Bunge has a 37% ownership interest in a grains and agricultural resale company in Brazil which strengthens its operations in this segment, leveraging its grain origination business. Vietnam Agribusiness Holdings Ptd. Ltd. —Bunge and Wilmar International Limited ("Wilmar") formed a joint venture in 2016 in Vietnam in which Wilmar invests into Bunge's crush operations in Vietnam, creating a three-party joint venture with Bunge and Wilmar as equal 45% shareholders and Quang Dung, a leading soybean meal distributor in Vietnam, retaining its existing 10% stake in the operations. Terminal Fronteira Norte Logística S.A.("TFN") —Bunge has a 50% ownership interest in TFN, a joint venture with Amaggi to operate a port terminal in Barcarena, Brazil. The TFN complex is mainly dedicated to exporting soybean and corn from Brazil. Navegações Unidas Tapajós S.A. ("Tapajos") —Bunge has a 50% ownership interest in Tapajos, a joint venture with Amaggi to operate inland waterway transportation between the municipalities of Itaituba and Barcarena, Brazil. The Tapajos complex is mainly dedicated to exporting soybeans and grains from Brazil to Asia and Europe. Terminais do Graneis do Guaruja ("TGG") —Bunge has a 57% ownership interest in TGG, a joint venture with Amaggi International Ltd. to operate a port terminal in Santos, Brazil, for the reception, storage and shipment of solid bulk cargoes. G3 Global Holding GP Inc. —Bunge has a 25% ownership interest in G3 Global Holding GP Inc., a joint venture with SALIC that operates grain facilities in Canada. Caiasa—Paraguay Complejo Agroindustrial Angostura S.A —Bunge has a 33.3% ownership interest in an oilseed processing facility joint venture with Louis Dreyfus Company and Aceitera General Deheza S.A. ("AGD"), in Paraguay. Terminal 6 S.A. and Terminal 6 Industrial S.A —Bunge has a joint venture, Terminal 6 S.A., in Argentina with AGD for the operation of a port facility located in the Santa Fe province of Argentina. Bunge is also a party to a second joint venture with AGD, Terminal 6 Industrial S.A., that operates a crushing facility located adjacent to the port facility. Bunge owns 40% and 50% , respectively, of these joint ventures. Sugar and Bioenergy ProMaiz —Bunge has a 50% ownership interest in a corn wet milling facility joint venture with AGD in Argentina for the manufacturing of ethanol. Southwest Iowa Renewable Energy, LLC ("SIRE") —Bunge has a 25% ownership interest in SIRE. The other owners are primarily agricultural producers located in Southwest Iowa. SIRE operates an ethanol plant near Bunge's oilseed processing facility in Council Bluffs, Iowa. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets, Noncurrent [Abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: December 31, (US$ in millions) 2017 2016 Recoverable taxes, net (1) $ 155 $ 139 Judicial deposits (1) 140 129 Other long-term receivables 12 23 Income taxes receivable (1) 307 261 Long-term investments 66 54 Affiliate loans receivable 24 25 Long-term receivables from farmers in Brazil, net (1) 131 133 Other 193 163 Total $ 1,028 $ 927 (1) These non-current assets arise primarily from Bunge's Brazilian operations and their realization could take several years. Recoverable taxes, net —Recoverable taxes are reported net of allowances of $28 million and $32 million at December 31, 2017 and 2016 , respectively. Judicial deposits —Judicial deposits are funds that Bunge has placed on deposit with the courts in Brazil. These funds are held in judicial escrow relating to certain legal proceedings pending legal resolution and bear interest at the SELIC rate, which is the benchmark rate of the Brazilian central bank. Income taxes receivable —Income taxes receivable includes overpayments of current income taxes plus accrued interest. These income tax prepayments are expected to be utilized for settlement of future income tax obligations. Income taxes receivable in Brazil bear interest at the SELIC rate. Affiliate loans receivable —Affiliate loans receivable, are primarily interest bearing receivables from unconsolidated affiliates with a remaining maturity of greater than one year . Long-term receivables from farmers in Brazil, net —Bunge provides financing to farmers in Brazil, primarily through secured advances against farmer commitments to deliver agricultural commodities (primarily soybeans) upon harvest of the then-current year's crop and through credit sales of fertilizer to farmers. The average recorded investment in long-term receivables from farmers in Brazil for the years ended December 31, 2017 and 2016 was $253 million and $235 million , respectively. The table below summarizes Bunge's recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. December 31, 2017 December 31, 2016 (US$ in millions) Recorded Investment Allowance Recorded Investment Allowance For which an allowance has been provided: Legal collection process (1) $ 98 $ 91 $ 84 $ 78 Renegotiated amounts (2) 25 22 36 31 For which no allowance has been provided: Legal collection process (1) 76 — 60 — Renegotiated amounts (2) 17 — 16 — Other long-term receivables 28 — 46 — Total $ 244 $ 113 $ 242 $ 109 (1) All amounts in legal process are considered past due upon initiation of legal action. (2) All renegotiated amounts are current on repayment terms. The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. December 31, (US$ in millions) 2017 2016 Beginning balance $ 109 $ 100 Bad debt provisions 19 3 Recoveries (12 ) (12 ) Write-offs (1 ) (1 ) Foreign currency translation (2 ) 19 Ending balance $ 113 $ 109 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities consist of the following: December 31, (US$ in millions) 2017 2016 Accrued liabilities $ 606 $ 548 Unrealized losses on derivative contracts at fair value 897 1,203 Advances on sales 406 395 Other 277 330 Total $ 2,186 $ 2,476 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Bunge operates globally and is subject to the tax laws and regulations of numerous tax jurisdictions and authorities, as well as tax agreements and treaties among these jurisdictions. Bunge's tax provision is impacted by, among other factors, changes in tax laws, regulations, agreements and treaties, currency exchange rates, and Bunge's profitability in each taxing jurisdiction. Bunge has elected to use the U.S. federal income tax rate to reconcile the actual provision for income taxes. The components of income from operations before income tax are as follows: Year Ended December 31, (US$ in millions) 2017 2016 2015 United States $ 21 $ 102 $ 207 Non-United States 209 894 844 Total $ 230 $ 996 $ 1,051 The components of the income tax expense (benefit) are: Year Ended December 31, (US$ in millions) 2017 2016 2015 Current: United States $ 45 $ (76 ) $ 35 Non-United States 34 170 245 79 94 280 Deferred: United States 20 38 36 Non-United States (43 ) 88 (20 ) (23 ) 126 16 Total $ 56 $ 220 $ 296 Reconciliation of the income tax expense (benefit) if computed at the U.S. Federal income tax rate to Bunge's reported income tax expense (benefit) is as follows: Year Ended December 31, (US$ in millions) 2017 2016 2015 Income from operations before income tax $ 230 $ 996 $ 1,051 Income tax rate 35 % 35 % 35 % Income tax expense at the U.S. Federal tax rate 80 348 368 Adjustments to derive effective tax rate: Foreign earnings taxed at different statutory rates (42 ) (68 ) (16 ) Valuation allowances 43 (44 ) 44 Fiscal incentives (1) (42 ) (34 ) (41 ) Foreign exchange on monetary items (9 ) 5 (5 ) Tax rate changes (62 ) 4 1 Non-deductible expenses 27 3 16 Uncertain tax positions (48 ) 89 (14 ) Deferred balance adjustments (4 ) — (8 ) Equity distributions — — (64 ) Transition tax 105 — — Tax exempt investments (14 ) (12 ) — Tax credits (8 ) (89 ) — Incremental tax on future distributions 27 — — Other 3 18 15 Income tax (benefit) expense $ 56 $ 220 $ 296 (1) Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax. The primary components of the deferred tax assets and liabilities and the related valuation allowances are as follows: December 31, (US$ in millions) 2017 2016 Deferred income tax assets: Net operating loss carryforwards $ 964 $ 944 Employee benefits 106 158 Tax credit carryforwards 13 10 Inventories 50 18 Intangibles — 9 Accrued expenses and other 388 231 Total deferred tax assets 1,521 1,370 Less valuation allowances (900 ) (839 ) Deferred tax assets, net of valuation allowance 621 531 Deferred income tax liabilities: Property, plant and equipment 251 200 Undistributed earnings of affiliates 35 13 Investments 17 33 Intangibles 24 — Total deferred tax liabilities 327 246 Net deferred tax assets $ 294 $ 285 Bunge has provided a deferred tax liability totaling $35 million and $13 million as of December 31, 2017 and 2016, respectively for withholding taxes (and state income taxes) imposed on earnings expected to be repatriated in the future. As of December 31, 2017, Bunge has determined it has unremitted earnings that are considered to be indefinitely reinvested of approximately $285 million and accordingly, no provision for income taxes has been made. If these earnings were distributed in the form of dividends or otherwise, Bunge would be subject to income taxes in the form of withholding taxes to the recipient for an amount of approximately $35 million . At December 31, 2017, Bunge's pre-tax loss carryforwards totaled $3,507 million , of which $2,965 million have no expiration, including loss carryforwards of $2,049 million in Brazil. While loss carryforwards in Brazil can be carried forward indefinitely, annual utilization is limited to 30% of taxable income calculated on an entity by entity basis as Brazil tax law does not provide for a consolidated return concept. As a result, realization of these carryforwards may take in excess of five years . The remaining tax loss carryforwards expire at various periods beginning in 2017 through the year 2036. Income Tax Valuation Allowances —Bunge records valuation allowances when current evidence does not suggest that some portion or all of its deferred tax assets will be realized. The ultimate realization of deferred tax assets depends primarily on Bunge's ability to generate sufficient timely future income of the appropriate character in the appropriate taxing jurisdiction. As of December 31, 2017 and 2016, Bunge has recorded valuation allowances of $900 million and $839 million , respectively. The net increase of $61 million results primarily from increased valuation allowances in Europe and Brazil along with foreign currency translation. Unrecognized Tax Benefits —ASC Topic 740 requires applying a "more likely than not" threshold to the recognition and de-recognition of tax benefits. Accordingly Bunge recognizes the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. At December 31, 2017 and 2016, respectively, Bunge had recorded unrecognized tax benefits of $99 million and $81 million in other non-current liabilities and $7 million and $49 million in current liabilities in its consolidated balance sheets. During 2017, 2016 and 2015, respectively, Bunge recognized $(9) million , $10 million and $(1) million of interest and penalty charges in income tax expense (benefit) in the consolidated statements of income. At December 31, 2017 and 2016, respectively, Bunge had included accrued interest and penalties of $27 million and $36 million within the related tax liability line in the consolidated balance sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (US$ in millions) 2017 2016 2015 Balance at January 1, $ 409 $ 51 $ 72 Additions based on tax positions related to the current year 34 9 6 Additions based on acquisitions — 2 10 Additions based on tax positions related to prior years 13 374 1 Reductions for tax positions of prior years (43 ) — (14 ) Settlement or clarification from tax authorities — (1 ) (6 ) Expiration of statute of limitations (32 ) (9 ) (5 ) Foreign currency translation 40 (17 ) (13 ) Balance at December 31, $ 421 $ 409 $ 51 Bunge believes that it is reasonably possible that approximately $95 million of its unrecognized tax benefits may be recognized by the end of 2018 as a result of a lapse of the statute of limitations or settlement with the tax authorities. Bunge, through its subsidiaries, files income tax returns in the United States (federal and various states) and non-United States jurisdictions. The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities: Open Tax Years North America 2010 - 2017 South America 2006 - 2017 Europe 2005 - 2017 Asia-Pacific 2003 - 2017 As of December 31, 2017, Bunge's Brazilian subsidiaries have received income tax and penalty assessments through 2014 of approximately 3,971 million Brazilian reais (approximately $1,200 million ), plus applicable interest on the outstanding amount. Bunge has recorded unrecognized tax benefits related to these assessments of 15 million Brazilian reais (approximately $4.6 million ) as of December 31, 2017. In addition, as of December 31, 2017, Bunge's Argentine subsidiary had received income tax assessments relating to 2006 through 2009 of approximately 1,275 million Argentine pesos (approximately $68 million ), plus applicable interest on the outstanding amount of approximately 3,787 million Argentine pesos (approximately $203 million ). Bunge anticipates that the tax authorities will examine fiscal years 2010-2013, although no notice has been rendered to Bunge's Argentine subsidiary. Management, in consultation with external legal advisors, believes that it is more likely than not that Bunge will prevail on the proposed assessments (with exception of unrecognized tax benefit discussed above) in Brazil and Argentina and intends to vigorously defend its position against these assessments. Bunge made cash income tax payments, net of refunds received, of $89 million , $144 million and $271 million during the years ended December 31, 2017, 2016, and 2015 respectively. On December 22, 2017, H.R. 1, commonly known as the “Tax Cuts and Jobs Act” (the “Tax Act”) was signed into U.S. law. The Tax Act lowers the U.S. statutory corporate tax rate from 35% to 21% starting in 2018, introduces further limitations on the deductibility of interest expense, and imposes a one-time transition tax (“Transition Tax”) on deemed repatriated earnings of certain foreign subsidiaries (non-United States subsidiaries owned by Bunge U.S. affiliates). In addition, the Tax Act introduces additional base-broadening measures, including Global Intangible Low-Taxed Income (“GILTI”) and the Base-Erosion Anti-Abuse Tax (“BEAT”). Bunge recognized the income tax effects of the Tax Act in accordance with Staff Accounting Bulletin No. 118, which provides SEC staff guidance for the application of ASC 740, Income Taxes, in the reporting period in which the Tax Act was signed into law. As such, our financial results reflect the income tax effects of the Tax Act for which the accounting under ASC Topic 740 is complete and provisional amounts for those specific income tax effects of the Tax Act for which the accounting under ASC Topic 740 is incomplete but a reasonable estimate could be determined. Pursuant to SAB 118, adjustments to the provisional amounts recorded by us as of December 31, 2017 that are identified within a subsequent measurement period of up to one year from the enactment date will be included as an adjustment to the tax expens e from continuing operations in the period the amounts are determined. Bunge recognized the effects of the Tax Act as follows: • Rate Change - Bunge has recorded a one-time provisional deferred tax benefit of $72 million in the fourth quarter of 2017 to revalue temporary differences at the new 21% tax rate. Bunge has not finalized our computation of the impact of the rate change as we are continuing to analyze and refine our assessment of the Tax Act. • Transition Tax - Bunge recognized a provisional charge of $105 million in the fourth quarter related to the Transition Tax. Bunge is awaiting further guidance from the U.S. taxing authorities on aspects of calculating the Transition Tax before finalizing the calculations as well as analyzing the amount of deemed repatriated earnings. Future legislation and regulatory action by U.S. states could also impact the Transition Tax, which would be re-estimated upon enactment of such legislation or issuance of regulations. • GILTI - Bunge is evaluating the future impacts of GILTI before deciding the policy election to be made in connection with the accounting for GILTI. Guidance from U.S. taxing authorities on the administration of GILTI will influence Bunge's decision on accounting policy elections. As a result of the Tax Act, Bunge is evaluating its intentions on repatriating previously taxed income and have provisionally recorded a deferred tax liability of $27 million related to withholding taxes and state taxes expected to be incurred upon repatriation of earnings to the United States. Bunge expects to finalize the provisional deferred tax liability calculations concurrently with the Transition Tax calculations. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Bunge's various financial instruments include certain components of working capital such as cash and cash equivalents, trade accounts receivable and trade accounts payable. Additionally, Bunge uses short and long-term debt to fund operating requirements. Cash and cash equivalents, trade accounts receivable, trade accounts payable, and short-term debt are stated at their carrying value, which is a reasonable estimate of fair value. See Note 4 for trade structured finance program, Note 18 for deferred purchase price receivable related to sales of trade receivables, Note 12 for long-term receivables from farmers in Brazil, net and other long-term investments, Note 17 for long-term debt, Note 10 for other non-recurring fair value measurements and Note 19 for employee benefit plans. Bunge's financial instruments also include derivative instruments and marketable securities, which are stated at fair value. Fair value is the expected price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Bunge determines the fair values of its readily marketable inventories, derivatives, and certain other assets based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs based on market data obtained from sources independent of Bunge that reflect the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are inputs that are developed based on the best information available in circumstances that reflect Bunge's own assumptions based on market data and on assumptions that market participants would use in pricing the asset or liability. The fair value standard describes three levels within its hierarchy that may be used to measure fair value. Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 1 assets and liabilities include exchange traded derivative contracts. Level 2: Observable inputs, including Level 1 prices (adjusted), quoted prices for similar assets or liabilities, quoted prices in markets that are less active than traded exchanges and other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include readily marketable inventories and over-the-counter ("OTC") commodity purchase and sale contracts and other OTC derivatives whose value is determined using pricing models with inputs that are generally based on exchange traded prices, adjusted for location specific inputs that are primarily observable in the market or can be derived principally from or corroborated by observable market data. Level 3: Unobservable inputs that are supported by little or no market activity and that are a significant component of the fair value of the assets or liabilities. In evaluating the significance of fair value inputs, Bunge gives consideration to items that individually or when aggregated with other inputs, generally represent more than 10% of the fair value of the assets or liabilities. For such identified inputs, judgments are required when evaluating both quantitative and qualitative factors in the determination of significance for purposes of fair value level classification and disclosure. Level 3 assets and liabilities include assets and liabilities whose value is determined using proprietary pricing models, discounted cash flow methodologies or similar techniques; as well as, assets and liabilities for which the determination of fair value requires significant management judgment or estimation. Bunge believes a change in these inputs would not result in a significant change in the fair values. The majority of Bunge's exchange traded agricultural commodity futures are settled daily generally through its clearing subsidiary and, therefore, such futures are not included in the table below. Assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. The lowest level of input is considered Level 3. The following table sets forth, by level, Bunge's assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date December 31, 2017 December 31, 2016 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 5) $ — $ 3,691 $ 365 $ 4,056 $ — $ 3,618 $ 237 $ 3,855 Trade accounts receivable (1) — 5 5 — 6 — 6 Unrealized gain on hedge accounting derivative contracts (2) : Interest Rate — — — — — 1 — 1 Foreign currency — 18 — 18 — 29 — 29 Unrealized gain on economic derivative contracts (2) : Interest rate — 4 — 4 — 1 — 1 Foreign currency — 321 — 321 — 312 — 312 Commodities 115 389 19 523 421 431 96 948 Freight 18 — 8 26 16 — — 16 Energy 18 — — 18 23 1 — 24 Deferred purchase price receivable (Note 18) — 107 — 107 — 87 — 87 Other (3) 15 234 — 249 18 108 — 126 Total assets $ 166 $ 4,769 $ 392 $ 5,327 $ 478 $ 4,594 $ 333 $ 5,405 Liabilities: Trade accounts payable (1) $ — $ 467 $ 116 $ 583 $ — $ 478 $ 44 $ 522 Unrealized loss on hedge accounting derivative contracts (4) : Interest rate — 31 — 31 — 18 — 18 Foreign currency — 2 — 2 — — — — Unrealized loss on economic derivative contracts (4) : Interest rate — 1 — 1 — — — — Foreign currency 1 430 — 431 — 233 — 233 Commodities 141 271 20 432 356 444 144 944 Freight 15 — 3 18 14 — 1 15 Energy 9 2 2 13 9 — 2 11 Total liabilities $ 166 $ 1,204 $ 141 $ 1,511 $ 379 $ 1,173 $ 191 $ 1,743 (1) These receivables and payables are hybrid financial instruments for which Bunge has elected the fair value option. (2) Unrealized gains on derivative contracts are generally included in other current assets. There were $0 million and $5 million included in other non-current assets at December 31, 2017 and December 31, 2016 , respectively. (3) Other includes the fair values of marketable securities and investments in other current assets and other non-current assets. (4) Unrealized losses on derivative contracts are generally included in other current liabilities. There were $31 million and $18 million included in other non-current liabilities at December 31, 2017 and December 31, 2016 , respectively. Derivatives —Exchange traded futures and options contracts and exchange cleared contracts are valued based on unadjusted quoted prices in active markets and are classified within Level 1. Bunge's forward commodity purchase and sale contracts are classified as derivatives along with other OTC derivative instruments relating primarily to freight, energy, foreign exchange and interest rates, and are classified within Level 2 or Level 3 as described below. Bunge estimates fair values based on exchange quoted prices, adjusted as appropriate for differences in local markets. These differences are generally valued using inputs from broker or dealer quotations, or market transactions in either the listed or OTC markets. In such cases, these derivative contracts are classified within Level 2. OTC derivative contracts include swaps, options and structured transactions that are fair valued are generally determined using quantitative models that require the use of multiple market inputs including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets which are not highly active, other observable inputs relevant to the asset or liability, and market inputs corroborated by correlation or other means. These valuation models include inputs such as interest rates, prices and indices to generate continuous yield or pricing curves and volatility factors. Where observable inputs are available for substantially the full term of the asset or liability, the instrument is categorized in Level 2. Certain OTC derivatives trade in less active markets with less availability of pricing information and certain structured transactions can require internally developed model inputs that might not be observable in or corroborated by the market. When unobservable inputs have a significant impact on the measurement of fair value, the instrument is categorized in Level 3. Exchange traded or cleared derivative contracts are classified in Level 1, thus transfers of assets and liabilities into and/or out of Level 1 occur infrequently. Transfers into Level 1 would generally only be expected to occur when an exchange cleared derivative contract historically valued using a valuation model as the result of a lack of observable inputs becomes sufficiently observable, resulting in the valuation price being essentially the exchange traded price. There were no significant transfers into or out of Level 1 during the periods presented. Readily marketable inventories —RMI reported at fair value are valued based on commodity futures exchange quotations, broker or dealer quotations, or market transactions in either listed or OTC markets with appropriate adjustments for differences in local markets where Bunge's inventories are located. In such cases, the inventory is classified within Level 2. Certain inventories may utilize significant unobservable data related to local market adjustments to determine fair value. In such cases, the inventory is classified as Level 3. If Bunge used different methods or factors to determine fair values, amounts reported as unrealized gains and losses on derivative contracts and RMI at fair value in the consolidated balance sheets and consolidated statements of income could differ. Additionally, if market conditions change subsequent to the reporting date, amounts reported in future periods as unrealized gains and losses on derivative contracts and RMI at fair value in the consolidated balance sheets and consolidated statements of income could differ. Level 3 Measurements —Transfers in and/or out of Level 3 represent existing assets or liabilities that were either previously categorized as a higher level for which the inputs to the model became unobservable or assets and liabilities that were previously classified as Level 3 for which the lowest significant input became observable during the period. Bunge's policy regarding the timing of transfers between levels is to record the transfers at the beginning of the reporting period. Level 3 Derivatives —Level 3 derivative instruments utilize both market observable and unobservable inputs within the fair value measurements. These inputs include commodity prices, price volatility, interest rates, volumes and locations. In addition, with the exception of the exchange cleared instruments, Bunge is exposed to loss in the event of the non-performance by counterparties on OTC derivative instruments and forward purchase and sale contracts. Adjustments are made to fair values on occasions when non-performance risk is determined to represent a significant input in Bunge's fair value determination. These adjustments are based on Bunge's estimate of the potential loss in the event of counterparty non-performance. Bunge did not have significant adjustments related to non-performance by counterparties at December 31, 2017 or 2016 . Level 3 Readily marketable inventories and other —The significant unobservable inputs resulting in Level 3 classification for RMI, physically settled forward purchase and sale contracts, and trade accounts receivable and payable, net, relate to certain management estimations regarding costs of transportation and other local market or location-related adjustments, primarily freight related adjustments in the interior of Brazil and the lack of market corroborated information in Canada. In both situations, Bunge uses proprietary information such as purchase and sale contracts and contracted prices to value freight, premiums and discounts in its contracts. Movements in the price of these unobservable inputs alone would not have a material effect on Bunge's financial statements as these contracts do not typically exceed one future crop cycle. The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2017 and 2016 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Year Ended December 31, 2017 (US$ in millions) Derivatives, Net (1) Readily Marketable Inventories (1) Trade Accounts Receivable/ Payable, Net (1) Total Balance, January 1, 2017 $ (51 ) $ 237 $ (44 ) $ 142 Total gains and losses (realized/unrealized) included in cost of goods sold (31 ) 142 13 124 Purchases 11 1,551 (469 ) 1,093 Sales — (2,041 ) — (2,041 ) Issuances (7 ) — — (7 ) Settlements 67 — 441 508 Transfers into Level 3 (9 ) 701 (59 ) 633 Transfers out of Level 3 22 (225 ) 2 (201 ) Balance, December 31, 2017 $ 2 $ 365 $ (116 ) $ 251 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, include gains/(losses) of $1 million , $11 million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2017 . Year Ended December 31, 2016 (US$ in millions) Derivatives, Net (1) Readily Marketable Inventories (1) Trade Accounts Receivable/ Payable, Net (1) Total Balance, January 1, 2016 $ 167 $ 245 $ (44 ) $ 368 Total gains and losses (realized/unrealized) included in cost of goods sold (88 ) 162 24 98 Purchases — 1,107 (222 ) 885 Sales — (1,400 ) — (1,400 ) Issuances (1 ) — — (1 ) Settlements (133 ) — 206 73 Transfers into Level 3 (4 ) 760 (78 ) 678 Transfers out of Level 3 8 (637 ) 70 (559 ) Balance, December 31, 2016 $ (51 ) $ 237 $ (44 ) $ 142 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, includes gains/(losses) of $(1) million , $(41) million and $1 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2016 . Derivative Instruments and Hedging Activities Hedge accounting derivatives - Bunge uses derivatives in qualifying hedge accounting relationships to manage certain of its interest rate and foreign currency risks. In executing these hedge strategies, Bunge primarily relies on the shortcut and critical terms match methods in designing its hedge accounting strategy, which results in little to no net earnings impact for these hedge relationships. Bunge monitors these relationships on a quarterly basis and will perform a quantitative analysis to validate the assertion that the hedges are highly effective if there are changes to the hedged item or hedging derivative. Fair value hedges of interest rate risk - For certain long term debt that is issued at a fixed rate, Bunge enters into interest rate swaps to effectively convert the fixed interest rate to a variable interest rate. These swaps may be for the full term of the debt or for only a part of the term. As we apply the shortcut method for all of our interest rate hedges on long term debt, the notional amount of the swap is equal to the amortized cost basis of the hedged debt. Cash flow hedges of currency risk - Bunge manages currency risk on certain forecasted purchases and sales with currency forwards. The change in the value of the forward is classified in accumulated other comprehensive income (loss) until the transaction affects earnings, at which time the change in value of the currency forward is reclassified to sales or cost of goods sold. These hedges go out until June 2018. Of the amount currently in accumulated other comprehensive income (loss), $4 million is expected to be reclassified to earnings in the next twelve months. Net investment hedges - Bunge hedges the currency risk of certain of its foreign subsidiaries with currency forwards and intercompany loans for which the currency risk is remeasured through accumulated other comprehensive income (loss). The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. December 31, (US$ in millions) 2017 2016 Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 2,071 $ 1,868 Cumulative adjustment to long-term debt from application of hedge accounting $ (31 ) $ (17 ) Interest rate swap - notional amount $ 2,109 $ 1,893 Cash flow hedges of currency risk Foreign currency forward - notional amount $ 237 $ 181 Net investment hedges Foreign currency forward - notional amount $ 1,000 $ — Carrying value of non-derivative hedging instrument $ 725 $ 840 In addition to using derivatives in qualifying hedge relationships, Bunge enters into derivatives to economically hedge its exposure to a variety of market risks it incurs in the normal course of operations. Interest rate derivatives are used to hedge exposures to our financial instrument portfolios and debt issuances. The impact of changes in fair value of these instruments is presented in interest expense. Currency derivatives are used to hedge the balance sheet and commercial exposures that arise from our global operations. The impact of changes in fair value of these instruments is presented in Cost of goods sold when hedging commercial exposures and Foreign currency gains (losses) when hedging monetary exposures. Agricultural commodity derivatives are used to manage our inventory and forward purchase and sales contracts. Contracts to purchase agricultural commodities generally relate to current or future crop years for delivery periods quoted by regulated commodity exchanges. Contracts for the sale of agricultural commodities generally do not extend beyond one future crop cycle. The impact of changes in fair value of these instruments is presented in Cost of goods sold. Bunge uses derivative instruments referred to as freight forward agreements ("FFA") and FFA options to hedge portions of its current and anticipated ocean freight costs. The impact of changes in fair value of these instruments is presented in Cost of goods sold. Bunge uses energy derivative instruments to manage its exposure to volatility in energy costs. Hedges may be entered into for natural gas, electricity, coal and fuel oil, including bunker fuel. The impact of changes in fair value of these instruments is presented in Cost of goods sold. The table below summarizes the volume of economic derivatives as of December 31, 2017 and 2016. For those contracts traded bilaterally through the over-the-counter markets (forwards and swaps) the gross position is provided. For exchange traded (futures, FRAs, FFAs and options) and cleared positions (energy swaps), the net position is provided. December 31, 2017 2016 Unit of Measure (US$ in millions) Long (Short) Long (Short) Interest rate Swaps $ 713 $ (1,611 ) $ 569 $ (500 ) $ Notional Futures $ — $ (2 ) $ 5 $ — $ Notional FRAs $ — $ (1,424 ) $ 979 $ (68 ) $ Notional Currency Forwards $ 9,784 $ (9,668 ) $ 6,126 $ (8,889 ) $ Notional Swaps $ 192 $ (148 ) $ 157 $ (129 ) $ Notional Futures $ — $ (58 ) $ — $ — $ Notional Options $ 521 $ (471 ) $ 268 $ (126 ) Delta Agricultural commodities Forwards 23,438,004 (30,055,331 ) 25,960,476 (35,672,883 ) Metric Tons Swaps 65,045 (5,279,181 ) 1,442,144 (3,326,874 ) Metric Tons Futures 4,520,267 — — (6,914,908 ) Metric Tons Options 828,296 — — (334,494 ) Metric Tons Ocean freight FFA — (3,617 ) — (3,165 ) Hire Days FFA options 892 — — (467 ) Hire Days Natural gas Swaps 3,519,668 — 1,351,351 — MMBtus Futures 2,691,350 — 3,930,000 — MMBtus Energy - other Forwards 5,534,290 — 6,048,869 — Metric Tons Futures 1,394 — 1,777 — Metric Tons Options — — — (1,285 ) Metric Tons Swaps 223,600 — 215,100 — Metric Tons The Effect of Financial Instruments on the Consolidated Statements of Income The table below summarizes the net effect of derivative instruments on the consolidated statements of income for the years ended December 31, 2017, 2016 and 2015. Gain (Loss) Recognized in Income on Derivative Instruments Year Ended December 31, (US$ in millions) 2017 2016 2015 Income statement classification Type of derivative Cost of goods sold Hedge accounting Foreign currency $ — $ — $ — Economic hedges Foreign currency 1 772 (620 ) Commodities 676 (618 ) 1,062 Freight 4 8 6 Energy 3 19 (25 ) Total Cost of goods sold $ 684 $ 181 $ 423 Interest expense Hedge accounting Interest rate $ 13 $ 5 $ — Economic hedges Interest rate — (4 ) — Total Interest expense $ 13 $ 1 $ — Foreign currency gains (losses) Economic hedges Foreign currency $ 22 $ 267 $ (302 ) Other comprehensive income (loss) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 14 $ 48 $ (76 ) Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (8 ) $ (394 ) $ 223 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ (111 ) $ 41 $ — Amounts released from accumulated other comprehensive income (loss) during the period Fair value hedge of foreign currency risk $ — $ — $ — Cash flow hedge of foreign currency risk 37 16 (76 ) Net investment hedge — — — Total $ 37 $ 16 $ (76 ) |
SHORT-TERM DEBT AND CREDIT FACI
SHORT-TERM DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
SHORT-TERM DEBT AND CREDIT FACILITIES | SHORT-TERM DEBT AND CREDIT FACILITIES Bunge's short-term borrowings are typically sourced from various banking institutions and the U.S. commercial paper market. Bunge also borrows from time to time in local currencies in various foreign jurisdictions. Interest expense includes facility commitment fees, amortization of deferred financing costs, and charges on certain lending transactions, including certain intercompany loans and foreign currency conversions in Brazil. The weighted-average interest rate on short-term borrowings at December 31, 2017 and 2016 was 9.84% and 8.69% , respectively. December 31, (US$ in millions) 2017 2016 Lines of credit: Unsecured, variable interest rates from 1.27% to 33.00% $ 304 $ 257 Total short-term debt (1) $ 304 $ 257 (1) Includes $179 million and $148 million of local currency borrowings in certain Central and Eastern European, South American, African and Asia-Pacific countries at a weighted average interest rate of 15.03% and 13.63% as of December 31, 2017 and December 31, 2016 , respectively. Bunge's commercial paper program is supported by an identical amount of committed back up bank credit lines (the "Liquidity Facility") provided by banks that are rated at least A-1 by Standard & Poor's Financial Services and P-1 by Moody's Investors Service. On November 20, 2014, Bunge entered into an unsecured $600 million five years Liquidity Facility with certain lenders party thereto. The cost of borrowing under the Liquidity Facility would typically be higher than the cost of issuing under Bunge's commercial paper program. At December 31, 2017 and December 31, 2016 , there were no borrowings outstanding under the commercial paper program and no borrowings under the Liquidity Facility. In addition to the committed facilities discussed above, from time-to-time, Bunge Limited and/or its financing subsidiaries enter into uncommitted bilateral short-term credit lines as necessary based on its financing requirements. At December 31, 2017 and 2016 , nil and nil were outstanding under these bilateral short-term credit lines, respectively. Loans under such credit lines are non-callable by the respective lenders. In addition, Bunge's operating companies had $304 million in short-term borrowings outstanding from local bank lines of credit at December 31, 2017 to support working capital requirements. |
LONG-TERM DEBT AND CREDIT FACIL
LONG-TERM DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND CREDIT FACILITIES | LONG-TERM DEBT AND CREDIT FACILITIES Long-term debt obligations are summarized below. December 31, (US$ in millions) 2017 2016 Term loan due 2019—three-month Yen LIBOR plus 0.75% (Tranche A) $ 253 $ 243 Term loan due 2019—fixed Yen interest rate of 0.96% (Tranche B) 53 51 Term loan due 2019—three-month LIBOR plus 1.30% (Tranche C) 85 85 5.90% Senior Notes due 2017 — 250 3.20% Senior Notes due 2017 — 600 8.50% Senior Notes due 2019 599 600 3.50% Senior Notes due 2020 497 497 3.00% Senior Notes due 2022 396 — 1.85% Senior Notes due 2023— Euro 960 843 3.25% Senior Notes due 2026 694 694 3.75% Senior Notes due 2027 593 — Other 45 144 Subtotal 4,175 4,007 Less: Current portion of long-term debt (15 ) (938 ) Total long-term debt (1) $ 4,160 $ 3,069 (1) Includes secured debt of $24 million and $34 million at December 31, 2017 and December 31, 2016 , respectively. The fair values of long-term debt, including current portion are calculated based on interest rates currently available on comparable maturities to companies with credit standing similar to that of Bunge. The carrying amounts and fair values of long-term debt are as follows: December 31, 2017 December 31, 2016 (US$ in millions) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Long-term debt, including current portion $ 4,175 $ 4,337 $ 4,007 $ 4,163 On December 12, 2017 , Bunge entered into an amendment agreement to its unsecured $1,750 million Amended and Restated Revolving Credit Facility, dated as of March 17, 2014 and amended as of August 10, 2015 (the “Revolving Credit Facility”). The amendment agreement extends the maturity date of the Revolving Credit Facility to December 12, 2020 . The amendment agreement also lowers the range of margin applicable to Bunge’s borrowings under the Revolving Credit Facility. Borrowings under the Credit Agreement will bear interest at LIBOR plus a margin, which will vary from 0.30% to 1.30% per annum, based on the credit ratings of Bunge's senior long-term unsecured debt. Amounts under the Revolving Credit Facility that remain undrawn are subject to a commitment fee payable quarterly based on the average undrawn portion of the Revolving Credit Facility at a rate of 35% of the margin specified above, based on the credit ratings of Bunge’s senior long-term unsecured debt. Bunge also will pay a fee that will vary from 0.10% to 0.40% based on the utilization of the facility. Bunge may from time to time, with the consent of the facility agent, request one or more of the existing lenders or new lenders to increase the total commitments in an amount not to exceed $250 million pursuant to an accordion provision. Bunge has the option to request an extension of the maturity date of the facility for two additional one -year periods. Each lender in its sole discretion may agree to any such extension request. Bunge had no borrowings outstanding at December 31, 2017 under the Revolving Credit Facility. In connection with Bunge entering into an agreement to acquire a 70% ownership interest in IOI Loders Croklaan from IOI Corporation Berhad (the “Loders Acquisition”), on September 12, 2017 , Bunge entered into an unsecured $900 million term loan agreement. Following the completion of the offering of senior notes described below, on and effective as of September 25, 2017, Bunge terminated the loan agreement. No funds had been drawn under the loan agreement as of the date of termination. On September 25, 2017, Bunge completed the sale and issuance of $400 million aggregate principal amount of 3.00% unsecured senior notes due September 25, 2022, and $600 million aggregate principal amount of 3.75% unsecured senior notes due September 25, 2027. The senior notes are fully and unconditionally guaranteed by Bunge Limited. The offering was made pursuant to a registration statement filed with the U.S. Securities and Exchange Commission. Interest on the senior notes is payable semi-annually in arrears in March and September of each year, commencing on March 25, 2018. The net proceeds of the offering were approximately $989 million after deducting underwriting commissions and offering expenses. Bunge intends to use the net proceeds from this offering to fund the purchase price for the Loders Acquisition. Pending the closing of the Loders Acquisition, the net proceeds from the offering were used to repay outstanding indebtedness of Bunge. On September 6, 2017, Bunge entered into an amendment agreement to its unsecured $865 million Amended and Restated Credit Agreement, dated as of June 17, 2014 (the “Credit Agreement”). The amendment agreement extends the maturity date of the Credit Agreement to September 6, 2022. The amendment agreement also lowers the range of margin applicable to Bunge’s borrowings under the Credit Agreement. Borrowings under the Credit Agreement will bear interest at LIBOR plus a margin, which will vary from 1.00% to 1.75% per annum, based on the credit ratings of Bunge's senior long-term unsecured debt. Amounts under the Credit Agreement that remain undrawn are subject to a commitment fee payable quarterly based on the average undrawn portion of the Credit Agreement at rates ranging from 0.125% to 0.275% , based on the credit ratings of Bunge’s senior long-term unsecured debt. Bunge had no borrowings outstanding at December 31, 2017 under the Credit Agreement. At December 31, 2017 , Bunge had $5,015 million of unused and available borrowing capacity under its committed long-term credit facilities with a number of lending institutions. Certain land, property, equipment and investments in consolidated subsidiaries having a net carrying value of approximately $54 million at December 31, 2017 have been mortgaged or otherwise collateralized against long-term debt of $29 million at December 31, 2017 . Principal Maturities —Principal maturities of long-term debt at December 31, 2017 are as follows: (US$ in millions) 2018 $ 18 2019 1,009 2020 517 2021 16 2022 406 Thereafter 2,259 Total (1) $ 4,225 (1) Excludes components of long-term debt attributable to fair value hedge accounting of $31 million and deferred financing fees and unamortized premiums of $19 million . Bunge's credit facilities and certain senior notes require it to comply with specified financial covenants related to minimum net worth, minimum current ratio, a maximum debt to capitalization ratio, and limitations on secured indebtedness. Bunge was in compliance with these covenants at December 31, 2017 . During the years ended December 31, 2017 , 2016 and 2015 , Bunge paid interest, net of interest capitalized, of $236 million , $234 million and $227 million , respectively. |
TRADE RECEIVABLES SECURITIZATIO
TRADE RECEIVABLES SECURITIZATION PROGRAM | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
TRADE RECEIVABLES SECURITIZATION PROGRAM | TRADE RECEIVABLES SECURITIZATION PROGRAM Bunge and certain of its subsidiaries participate in a trade receivables securitization program ("Program") with a financial institution, as administrative agent, and certain commercial paper conduit purchasers and committed purchasers (collectively, the "Purchasers") that provides for funding of up to $700 million against receivables sold into the Program. The Program is designed to enhance Bunge's financial flexibility by providing an additional source of liquidity for its operations. In connection with the Program, certain of Bunge's U.S. and non-U.S. subsidiaries that originate trade receivables may sell eligible receivables in their entirety on a revolving basis to a consolidated bankruptcy remote special purpose entity, Bunge Securitization B.V. ("BSBV") formed under the laws of The Netherlands. BSBV in turn sells such purchased trade receivables to the administrative agent (acting on behalf of the Purchasers) pursuant to a receivables transfer agreement. In connection with these sales of accounts receivable, Bunge receives a portion of the proceeds up front and an additional amount upon the collection of the underlying receivables, which is expected to be generally between 10% and 15% of the aggregate amount of receivables sold through the Program. Koninklijke Bunge B.V., a wholly owned subsidiary of Bunge, acts as master servicer, responsible for servicing and collecting the accounts receivable for the Program. The Program terminates on May 26, 2021. The trade receivables sold under the program are subject to specified eligibility criteria, including eligible currencies, and country and obligor concentration limits. December 31, (US$ in millions) 2017 2016 Receivables sold which were derecognized on Bunge balance sheet $ 810 $ 628 Deferred purchase price included in other current assets $ 107 $ 87 The table below summarizes the cash flows and discounts of Bunge's trade receivables associated with the Program. Servicing fees under the Program were not significant in any period. Years Ended December 31, (US$ in millions) 2017 2016 2015 Gross receivables sold $ 10,022 $ 9,405 $ 10,601 Proceeds received in cash related to transfer of receivables $ 9,734 $ 9,197 $ 10,396 Cash collections from customers on receivables previously sold $ 9,659 $ 9,176 $ 10,542 Discounts related to gross receivables sold included in SG&A $ 9 $ 6 $ 5 Bunge's risk of loss following the sale of the trade receivables is limited to the deferred purchase price ("DPP"), and is included in other current assets in the consolidated balance sheets (see Note 6). The DPP will be repaid in cash as receivables are collected, generally within 30 days . Delinquencies and credit losses on trade receivables sold under the Program during the years ended December 31, 2017 and 2016 were insignificant. Bunge has reflected all cash flows under the Program as operating cash flows in the consolidated statements of cash flows for the years ended December 31, 2017 , 2016 and 2015 . |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Certain U.S., Canadian, European and Brazilian-based subsidiaries of Bunge sponsor non-contributory defined benefit pension plans covering substantially all employees of the subsidiaries. The plans provide benefits based primarily on participants' salary and length of service. The funding policies for Bunge's defined benefit pension plans are determined in accordance with statutory funding requirements. The most significant defined benefit plan is in the United States. The U.S. funding policy requires at least those amounts required by the Pension Protection Act of 2006. Assets of the plans consist primarily of equity and fixed income investments. Certain United States and Brazil based subsidiaries of Bunge have benefit plans to provide certain postretirement healthcare benefits to eligible retired employees of those subsidiaries. The plans require minimum retiree contributions and define the maximum amount the subsidiaries will be obligated to pay under the plans. Bunge's policy is to fund these costs as they become payable. Plan amendments and pension liability adjustment - On September 19, 2017, Bunge approved changes to certain U.S. defined benefit pension plans. These changes will freeze the Plans for future benefit accruals effective January 1, 2023, and these Plans will be closed for participation for employees hired on or after January 1, 2018. As a result, Bunge recognized a curtailment gain associated with the Plans’ freeze and as such, the projected benefit obligations for these Plans were remeasured as of September 30, 2017. At September 30, 2017, a $31 million pension curtailment gain and $18 million remeasurement loss were recognized and recorded in other comprehensive income. In addition, the Company offered a voluntary early retirement program to qualifying U.S. based salaried employees. The employees that accepted the offer received an enhanced retirement benefit in the non-contributory defined benefit pension plans. The Company incurred $10 million of additional defined benefit expenses relating to the program, which are reflected in the tables below. Plan Transfers In and Out - There were no significant settlements or transfers into or out of Bunge's employee benefit plans during the years ended December 31, 2017 or 2016 . The following table sets forth in aggregate the changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status at December 31, 2017 or 2016 . A measurement date of December 31 was used for all plans. Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2017 2016 2017 2016 Change in benefit obligations: Benefit obligation at the beginning of year $ 941 $ 864 $ 74 $ 56 Service cost 33 32 — — Interest cost 36 35 8 7 Plan curtailments (31 ) (3 ) — — Special termination benefits 9 — — Actuarial (gain) loss, net 100 31 (11 ) 8 Employee contributions 6 6 1 1 Net transfers in (out) 3 8 — — Plan settlements — (5 ) — — Benefits paid (35 ) (21 ) (4 ) (7 ) Expenses paid (4 ) (2 ) — — Impact of foreign exchange rates 15 (4 ) (1 ) 9 Benefit obligation at the end of year $ 1,073 $ 941 $ 67 $ 74 Change in plan assets: Fair value of plan assets at the beginning of year $ 740 $ 689 $ — $ — Actual return on plan assets 102 53 — — Employer contributions 77 20 3 6 Employee contributions 6 6 1 1 Plan settlements — (4 ) — — Effect of plan combinations — 1 — — Benefits paid (35 ) (21 ) (4 ) (7 ) Expenses paid (4 ) (3 ) — — Impact of foreign exchange rates 10 (1 ) — — Fair value of plan assets at the end of year $ 896 $ 740 $ — $ — Funded (unfunded) status and net amounts recognized: Plan assets (less than) in excess of benefit obligation $ (177 ) $ (201 ) $ (67 ) $ (74 ) Net (liability) asset recognized in the balance sheet $ (177 ) $ (201 ) $ (67 ) $ (74 ) Amounts recognized in the balance sheet consist of: Non-current assets $ 18 $ 16 $ — Current liabilities (6 ) (5 ) (7 ) (8 ) Non-current liabilities (189 ) (212 ) (60 ) (66 ) Net liability recognized $ (177 ) $ (201 ) $ (67 ) $ (74 ) Included in accumulated other comprehensive income (loss) for pension benefits at December 31, 2017 are the following amounts that have not yet been recognized in net periodic benefit costs: unrecognized prior service credit of $6 million ( $4 million , net of tax) and unrecognized actuarial loss of $194 million ( $126 million , net of tax). Expected prior service costs and unrecognized actuarial losses as a component of net periodic benefit costs included in accumulated other comprehensive income (loss) in 2017 is $9 million ( $6 million , net of tax). Included in accumulated other comprehensive income (loss) for postretirement healthcare benefits at December 31, 2017 are the following amounts that have not yet been recognized in net periodic benefit costs: unrecognized prior service credit of $1 million ( $1 million , net of tax), and unrecognized actuarial loss of $3 million ( $2 million , net of tax). Bunge does not expect to recognize any unrecognized prior service credits or unrecognized actuarial losses as components of net periodic benefit costs for its postretirement benefit plans in 2017 . Bunge has aggregated certain defined benefit pension plans with projected benefit obligations in excess of fair value of plan assets with pension plans that have fair value of plan assets in excess of projected benefit obligations. At December 31, 2017 , $1,073 million projected benefit obligations includes plans with projected benefit obligations of $937 million which were in excess of the fair value of related plan assets of $742 million . At December 31, 2016 , the $941 million projected benefit obligations include plans with projected benefit obligations of $806 million which were in excess of the fair value of related plan assets of $589 million . The accumulated benefit obligation for the defined pension benefit plans, respectively, was $1,011 million at December 31, 2017 and $850 million at December 31, 2016 . The following table summarizes information relating to aggregated defined benefit pension plans with an accumulated benefit obligation in excess of plan assets: Pension Benefits December 31, (US$ in millions) 2017 2016 Projected benefit obligation $ 827 $ 680 Accumulated benefit obligation $ 789 $ 617 Fair value of plan assets $ 651 $ 484 At December 31, 2017 , for measurement purposes related to postretirement benefit plans, an 8.4% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2017 , decreasing to 8.1% by 2038, remaining at that level thereafter. At December 31, 2016 , for measurement purposes related to postretirement benefit plans, an 8.8% annual rate of increase in the per capita cost of covered healthcare benefits was assumed for 2016 , decreasing to 8.0% by 2038, remaining at that level thereafter. A one-percentage point change in assumed healthcare cost trend rates would have the following effects: (US$ in millions) One-percentage point increase One-percentage point decrease Effect on total service and interest cost $ 1 $ (1 ) Effect on postretirement benefit obligation $ 5 $ (4 ) The components of net periodic benefit costs are as follows for defined benefit pension plans and postretirement benefit plans: Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2017 2016 2015 2017 2016 2015 Service cost $ 33 $ 32 $ 35 $ — $ — $ — Interest cost 36 35 33 8 7 5 Expected return on plan assets (46 ) (44 ) (42 ) — — — Amortization of prior service cost — — 1 — — — Amortization of net loss 10 10 12 — — — Curtailment loss — — 1 — — — Settlement loss recognized — — 1 — — — Special termination benefit 9 1 — — — — Net periodic benefit costs $ 42 $ 34 $ 41 $ 8 $ 7 $ 5 The weighted-average actuarial assumptions used in determining the benefit obligation under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2017 2016 2017 2016 Discount rate 3.4 % 3.9 % 9.0 % 10.8 % Increase in future compensation levels 3.2 % 3.2 % N/A N/A The weighted-average actuarial assumptions used in determining the net periodic benefit cost under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2017 2016 2015 2017 2016 2015 Discount rate 4.0 % 4.2 % 3.8 % 10.8 % 11.4 % 9.8 % Expected long-term rate of return on assets 6.2 % 6.4 % 6.7 % N/A N/A N/A Increase in future compensation levels 3.2 % 3.3 % 3.5 % N/A N/A N/A The sponsoring subsidiaries select the expected long-term rate of return on assets in consultation with their investment advisors and actuaries. These rates are intended to reflect the average rates of earnings expected on the funds invested or to be invested to provide required plan benefits. The plans are assumed to continue in effect as long as assets are expected to be invested. In estimating the expected long-term rate of return on assets, appropriate consideration is given to historical performance for the major asset classes held, or anticipated to be held, by the applicable plan trusts and to current forecasts of future rates of return for those asset classes. Cash flows and expenses are taken into consideration to the extent that the expected returns would be affected by them. As assets are generally held in qualified trusts, anticipated returns are not reduced for taxes. Pension Benefit Plan Assets —The objectives of the plans' trust funds are to sufficiently diversify plan assets to maintain a reasonable level of risk without imprudently sacrificing returns, with a target asset allocation of approximately 40% fixed income securities and approximately 60% equities. Bunge implements its investment strategy through a combination of indexed mutual funds and a proprietary portfolio of fixed income securities. Bunge's policy is not to invest plan assets in Bunge Limited shares. Plan investments are stated at fair value, which is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For a further definition of fair value and the associated fair value levels, refer to Note 15. The fair values of Bunge's defined benefit pension plans' assets at the measurement date, by category, are as follows: December 31, 2017 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 31 $ 31 $ — $ — Equities: Mutual funds (1) 470 423 47 — Fixed income securities: Mutual funds (2) 357 315 42 — Others (3) 38 7 26 5 Total $ 896 $ 776 $ 115 $ 5 December 31, 2016 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 8 $ 8 $ — $ — Equities: Mutual funds (1) 406 366 40 — Fixed income securities: Mutual funds (2) 299 199 100 — Others (3) 27 — 23 4 Total $ 740 $ 573 $ 163 $ 4 (1) This category represents a portfolio of equity investments comprised of equity index funds that invest in U.S. equities and non-U.S. equities. The U.S. equities are comprised of investments focusing on large, mid and small cap companies and non-U.S. equities are comprised of international, emerging markets, and real estate investment trusts. (2) This category represents a portfolio of fixed income investments in mutual funds comprised of investment grade U.S. government bonds and notes, foreign government bonds, and corporate bonds from diverse industries. (3) This category represents a portfolio consisting of a mixture of equity, fixed income and cash. Bunge expects to contribute $15 million and $7 million , respectively, to its defined benefit pension and postretirement benefit plans in 2018 . The following benefit payments, which reflect future service as appropriate, are expected to be paid related to defined benefit pension and postretirement benefit plans: (US$ in millions) Pension Benefit Payments Postretirement Benefit Payments 2018 $ 49 $ 7 2019 50 7 2020 52 7 2021 53 7 2022 53 7 2023 and onwards 292 33 Employee Defined Contribution Plans —Bunge also makes contributions to qualified defined contribution plans for eligible employees. Contributions to these plans amounted to $11 million , $11 million and $11 million during the years ended December 31, 2017 , 2016 and 2015 , respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Notes receivable - Bunge holds a note receivable from Navegações Unidas Tapajós S.A., a 50% equity method investment in Brazil, having a carrying value of $22 million at December 31, 2017 , which matures in June 2019, with interest based on 80% of CDI, the average one‑day interbank deposit rate in Brazil. Bunge holds a note receivable from Solazyme Bunge Renewable Oils Cooperatief U.A., a 49.9% equity method investment in Brazil, having a carrying value of $9 million at December 31, 2017 , with an interest rate based on 100% of CDI, the average one-day interbank deposit rate in Brazil. Bunge holds a note receivable from its affiliate Bunge SCF Grain LLC, a 50% equity method investment, with a carrying value of $9 million at December 31, 2017 , matures on March 31, 2019, with an interest rate based on LIBOR. In addition, Bunge held notes receivables from other related parties totaling $2 million at December 31, 2017 . Other —Bunge purchased soybeans and other commodity products and received port services from certain of its unconsolidated ventures, totaling $920 million , $1,054 million and $757 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Bunge also sold soybeans and other commodity products and provided port services to certain of its unconsolidated ventures, totaling $508 million , $326 million and $351 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. At December 31, 2017 and 2016 , Bunge had approximately $16 million and $33 million of receivables from these ventures included in trade accounts receivable in the consolidated balance sheets as of those dates. In addition, at December 31, 2017 and 2016 , Bunge had approximately $36 million and $46 million of payables to these ventures included in trade accounts payable in the consolidated balance sheets as of those dates. In addition, Bunge provided services during the years ended December 31, 2017 , 2016 and 2015 , to its unconsolidated ventures totaling $166 million , $103 million and $106 million , respectively, for services including primarily tolling and administrative support. Bunge believes all of these transaction values are similar to those that would be conducted with third parties. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Bunge is party to a large number of claims and lawsuits, primarily non-income tax and labor claims in Brazil and non-income tax claims in Argentina, arising in the normal course of business. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. Bunge records liabilities related to its general claims and lawsuits when the exposure item becomes probable and can be reasonably estimated. Bunge management does not expect these matters to have a material adverse effect on Bunge’s financial condition, results of operations or liquidity. However, these matters are subject to inherent uncertainties and there exists the remote possibility of an adverse impact on Bunge’s position in the period the uncertainties are resolved whereby the settlement of the identified contingencies could exceed the amount of provisions included in the consolidated balance sheets. Included in other non-current liabilities at December 31, 2017 and 2016 are the following amounts related to these matters: December 31, (US$ in millions) 2017 2016 Non-income tax claims $ 161 $ 170 Labor claims 92 82 Civil and other claims 103 98 Total $ 356 $ 350 Brazil Indirect Taxes Non-income tax claims - These tax claims relate principally to claims against Bunge’s Brazilian subsidiaries, primarily value-added tax claims (ICMS, ISS, IPI and PIS/COFINS). The determination of the manner in which various Brazilian federal, state and municipal taxes apply to the operations of Bunge is subject to varying interpretations arising from the complex nature of Brazilian tax law. In addition to the matter discussed below, Bunge monitors other potential claims in Brazil regarding these value-added taxes. In particular, Bunge monitors the Brazilian federal and state governments’ responses to recent Brazilian Supreme Court decisions invalidating on constitutional grounds certain ICMS incentives and benefits granted by various states. While Bunge was not a recipient of any of the incentives and benefits that were the subject of these Supreme Court decisions, it has received other similar tax incentives and benefits which are being challenged before the Supreme Court. In August 2017, Complementary Law 160/2017 (“LC 160/2017”) was published, authorizing the states, through an agreement to be reached within the framework of CONFAZ (National Council of Fiscal Policy), to grant amnesty for tax debts arising from existing tax benefits granted without previous CONFAZ authorization and to maintain such existing benefits still in force for up to 15 years . In December 2017, Interstate Agreement ICMS 190/2017 was published to regulate Complementary Law 160/2017, which provides for the remission of tax credits originated from tax benefits granted without the previous approval of a CONFAZ Interstate Agreement. Bunge has not received any tax assessment from the states that granted these incentives or benefits related to their validity and, based on Bunge's evaluation of this matter as required by U.S. GAAP, no liability has been recorded in the consolidated financial statements. On February 13, 2015, Brazil’s Supreme Federal Court ruled in a leading case that certain state ICMS tax credits for staple foods (including soy oil, margarine, mayonnaise and wheat flours) are unconstitutional. Bunge, like other companies in the Brazilian food industry, is involved in several administrative and judicial disputes with Brazilian states regarding these tax credits. While the leading case does not involve Bunge and each case is unique in facts and circumstances and applicable state law, the ruling has general precedent authority in lower court cases. Based on management’s review of the ruling (without considering the future success of any potential clarification or modulation of the ruling) and its general application to Bunge’s pending cases, management recorded a liability in the fourth quarter of 2014. Since 2015, Bunge settled a portion of its outstanding liabilities in amnesty programs in certain Brazilian states. As of December 31, 2017 , the accrued liability was 403 million Brazilian reais (approximately $122 million ). As of December 31, 2017 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued the outstanding claims (including applicable interest and penalties) as of: December 31, (US$ in millions) Years Examined 2017 2016 ICMS 1990 to Present $ 281 $ 241 PIS/COFINS 2004 through 2012 $ 200 $ 154 Argentina Export Tax Since 2010, the Argentine tax authorities have been conducting a review of income and other taxes paid by exporters and processors of cereals and other agricultural commodities in the country. In that regard, the Company has been subject to a number of assessments, proceedings, and claims related to its activities. In 2011, Bunge’s subsidiary in Argentina paid $112 million of accrued export tax obligations under protest and preserved its rights with respect to such payment. In 2012, the Argentine tax authorities further assessed interest on these payments, which as of December 31, 2017 , totaled approximately $263 million . In 2012, the Argentine government suspended Bunge’s Argentine subsidiary from a registry of grain traders. While the suspension has not had a material adverse effect on Bunge’s business in Argentina, these actions have resulted in additional administrative requirements and increased logistical costs on domestic grain shipments within Argentina. Bunge is challenging these actions in the Argentine courts. Labor claims — The labor claims are principally claims against Bunge’s Brazilian subsidiaries. The labor claims primarily relate to dismissals, severance, health and safety, salary adjustments and supplementary retirement benefits. Civil and other claims — The civil and other claims relate to various disputes with third parties, including suppliers and customers. During the first quarter of 2016 , Bunge received a notice from the Brazilian Administrative Council for Economic Defense initiating an administrative proceeding against its Brazilian subsidiary and two of its employees, certain of its former employees, several other companies in the Brazilian wheat milling industry, and others for alleged anticompetitive activities in the north and northeast of Brazil. Bunge is defending against this action; however, the proceedings are at an early stage and Bunge cannot, at this time, reasonably predict the ultimate outcome of the proceedings or sanctions, if any, which may be imposed. Guarantees —Bunge has issued or was a party to the following guarantees at December 31, 2017 : (US$ in millions) Maximum Potential Future Payments Unconsolidated affiliates guarantee (1)(2) $ 215 Residual value guarantee (3) 269 Total $ 484 (1) Bunge issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates in 2017 through 2034 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2017 , Bunge recorded no obligation related to these guarantees. (2) Bunge issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2017 , Bunge recorded no obligation related to these guarantees. (3) Bunge issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion of the lease term. These leases expire at various dates from 2019 through 2024 . At December 31, 2017 , Bunge's recorded obligation related to these guarantees was $2 million . Bunge Limited has provided a Guaranty to the Director of the Illinois Department of Agriculture as Trustee for Bunge North America, Inc. ("BNA"), an indirect wholly-owned subsidiary, which guarantees all amounts due and owing by BNA, to grain producers and/or depositors in the State of Illinois who have delivered commodities to BNA's Illinois facilities. In addition, Bunge Limited has provided full and unconditional parent level guarantees of the outstanding indebtedness under certain credit facilities entered into and senior notes issued by, its subsidiaries. At December 31, 2017 , Bunge's consolidated balance sheet includes debt with a carrying amount of $4,249 million related to these guarantees. This debt includes the senior notes issued by three of Bunge's 100% owned finance subsidiaries, Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge N.A. Finance L.P. There are largely no restrictions on the ability of Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge N.A. Finance L.P. or any other Bunge subsidiary to transfer funds to Bunge Limited. Freight Supply Agreements —In the ordinary course of business, Bunge enters into time charter agreements for the use of ocean freight vessels and freight service on railroad lines for the purpose of transporting agricultural commodities. In addition, Bunge sells the right to use these ocean freight vessels when excess freight capacity is available. These agreements generally range from two months to approximately seven years , in the case of ocean freight vessels, depending on market conditions, and five to nine years in the case of railroad services. Future minimum payment obligations due under these agreements as of December 31, 2017 are as follows: (US$ in millions) Ocean Freight Vessels Railroad Services Minimum Payment Obligations 2018 $ 194 $ 36 $ 230 2019 and 2020 121 69 190 2021 and 2022 102 67 169 2023 and thereafter 53 66 119 Total $ 470 $ 238 $ 708 Actual amounts paid under these contracts may differ due to the variable components of these agreements and the amount of income earned on the sales of excess capacity. The agreements for the freight service on railroad lines require a minimum monthly payment regardless of the actual level of freight services used by Bunge. The costs of Bunge's freight supply agreements are typically passed through to the customers as a component of the prices charged for its products. Also in the ordinary course of business, Bunge enters into re-let agreements related to ocean freight vessels. Such re-let agreements are similar to sub-leases. Bunge received approximately $117 million during the year ended December 31, 2017 and expects to receive payments of approximately $15 million in 2018 under such relet agreements. In reviewing the impact of ASC 606, the Company also considered the impact of the adoption of ASU 2016-02, Leases (Topic 842), which is effective January 1, 2019, on the hiring of the vessels and has preliminarily concluded that these contracts are leases in the scope of the guidance. Commitments —At December 31, 2017 , Bunge had approximately $20 million of purchase commitments related to its inventories, $95 million of power supply contracts and $38 million of contractual commitments related to construction in progress. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2017 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount [Abstract] | |
REDEEMABLE NONCONTROLLING INTERESTS | REDEEMABLE NONCONTROLLING INTERESTS In July 2012, Bunge and Nutre Farming B.V. entered into a joint venture agreement whereby Bunge acquired a 55% interest in a newly formed oilseed processing venture in its agribusiness segment in Eastern Europe. Bunge consolidates the venture in its consolidated financial statements. In conjunction with the formation of the venture, Bunge entered into an agreement to acquire the remaining 45% interest at either Bunge's or the noncontrolling interest holder's option in the future. The exercise date and price of the option were reasonably determinable. As a result, Bunge had classified the noncontrolling interest as redeemable noncontrolling interest in its consolidated balance sheet as of December 31, 2012. During the second quarter of 2016, Bunge exercised its call option for the remaining 45% interest in the joint venture for approximately $39 million . The transaction was concluded in September 2016. |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | EQUITY Share Repurchase Program —In May 2015, Bunge established a new program for the repurchase of up to $500 million of Bunge's issued and outstanding common shares. The program has no expiration date. Bunge did not repurchase any common shares during the year ended December 31, 2017 . In 2016, Bunge repurchased 3,296,230 common shares under this program for $200 million . Total repurchases under the program from its inception in May 2015 through December 31, 2017 were 4,707,440 shares for $300 million . Cumulative Convertible Perpetual Preference Shares —Bunge has 6,899,700 , 4.875% cumulative convertible perpetual preference shares (convertible preference shares), par value $0.01 outstanding at December 31, 2017 . Each convertible preference share has an initial liquidation preference of $100 per share plus accumulated unpaid dividends up to a maximum of an additional $25 per share. As a result of adjustments made to the initial conversion price because cash dividends paid on Bunge Limited's common shares exceeded certain specified thresholds, each convertible preference share is convertible at any time at the holder's option into approximately 1.1693 common shares based on a conversion price of $85.5238 per convertible preference share, subject in each case to certain specified anti-dilution adjustments (which represents 8,067,819 Bunge Limited common shares at December 31, 2017 ). If the closing market price of Bunge's common shares equals or exceeds 130% of the conversion price of the convertible preference shares, for 20 trading days within any period of 30 consecutive trading days (including the last trading day of such period), Bunge may elect to cause all outstanding convertible preference shares to be automatically converted into the number of common shares that are issuable at the conversion price. The convertible preference shares are not redeemable by Bunge at any time. The convertible preference shares accrue dividends at an annual rate of 4.875% . Dividends are cumulative from the date of issuance and are payable, quarterly in arrears, on each March 1, June 1, September 1 and December 1, commencing on March 1, 2007, when, as and if declared by Bunge's Board of Directors. The dividends may be paid in cash, common shares or a combination thereof. Accumulated but unpaid dividends on the convertible preference shares will not bear interest. In each of the years ended December 31, 2017 , 2016 and 2015 , Bunge recorded $34 million of dividends on its convertible preference shares. Pension liability adjustment - On September 19, 2017, Bunge approved changes to certain U.S. defined benefit pension plans (“Plans”). The changes were announced on September 26, 2017 to all U.S. employees of Bunge. These changes will freeze the Plans for future benefit accruals effective January 1, 2023, and these Plans will be closed for participation for employees hired on or after January 1, 2018. As a result, Bunge recognized a curtailment gain associated with the Plans’ freeze and as such, the projected benefit obligations for these Plans were remeasured as of September 30, 2017. At September 30, 2017, a $31 million pension curtailment gain and $18 million remeasurement loss were recognized and recorded in other comprehensive income. Accumulated Other Comprehensive Income (Loss) Attributable to Bunge —The following table summarizes the balances of related after-tax components of accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Currency Translation Adjustment (1) Deferred Gains (Losses) on Hedging Activities Pension and Other Postretirement Liability Adjustments Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance January 1, 2015 $ (3,897 ) $ (10 ) (154 ) 3 (4,058 ) Other comprehensive income (loss) before reclassifications (2,546 ) 147 7 — (2,392 ) Amount reclassified from accumulated other comprehensive income — 77 13 — 90 Net-current period other comprehensive income (loss) (2,546 ) 224 20 — (2,302 ) Balance, December 31, 2015 (6,443 ) $ 214 (134 ) 3 (6,360 ) Other comprehensive income (loss) before reclassifications 709 (305 ) (11 ) — 393 Amount reclassified from accumulated other comprehensive income (loss) — (11 ) — — (11 ) Net-current period other comprehensive income (loss) 709 (316 ) (11 ) — 382 Balance, December 31, 2016 (5,734 ) $ (102 ) (145 ) 3 (5,978 ) Other comprehensive income (loss) before reclassifications 187 (105 ) 5 2 89 Amount reclassified from accumulated other comprehensive income (loss) — (37 ) — (4 ) (41 ) Net-current period other comprehensive income (loss) 187 (142 ) 5 (2 ) 48 Balance, December 31, 2017 $ (5,547 ) $ (244 ) $ (140 ) $ 1 $ (5,930 ) (1) Bunge has significant operating subsidiaries in Brazil, Argentina, North America, Europe and Asia-Pacific. The functional currency of Bunge's subsidiaries is the local currency. The assets and liabilities of these subsidiaries are translated into U.S. dollars from local currency at month-end exchange rates, and the resulting foreign currency translation gains (losses) are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per share is computed by dividing net income available to Bunge common shareholders by the weighted-average number of common shares outstanding, excluding any dilutive effects of stock options, restricted stock unit awards, and convertible preference shares during the reporting period. Diluted earnings per share is computed similar to basic earnings per share, except that the weighted-average number of common shares outstanding is increased to include additional shares from the assumed exercise of stock options, restricted stock unit awards and convertible securities, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options, except those which are not dilutive, were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. In addition, Bunge accounts for the effects of convertible securities using the if-converted method. Under this method, the convertible securities are assumed to be converted and the related dividends are added back to earnings, if dilutive. The following table sets forth the computation of basic and diluted earnings per common share: Year Ended December 31, (US$ in millions, except for share data) 2017 2016 2015 Income from continuing operations $ 174 $ 776 $ 755 Net (income) loss attributable to noncontrolling interests (14 ) (22 ) 1 Income (loss) from continuing operations attributable to Bunge 160 754 756 Other redeemable obligations (1) — (2 ) (19 ) Convertible preference share dividends (34 ) (34 ) (34 ) Income (loss) from discontinued operations, net of tax — (9 ) 35 Net income (loss) available to Bunge common shareholders - Basic 126 709 738 Add back convertible preference share dividends — 34 34 Net income (loss) available to Bunge common shareholders - Diluted $ 126 $ 743 $ 772 Weighted-average number of common shares outstanding: Basic 140,365,549 139,845,124 143,671,546 Effect of dilutive shares: —stock options and awards (2) 899,528 441,521 749,031 —convertible preference shares (3) — 7,939,830 7,818,390 Diluted 141,265,077 148,226,475 152,238,967 Basic earnings (loss) per common share: Net income (loss) from continuing operations $ 0.90 $ 5.13 $ 4.90 Net income (loss) from discontinued operations — (0.06 ) 0.24 Net income (loss) attributable to Bunge common shareholders—basic $ 0.90 $ 5.07 $ 5.14 Diluted earnings (loss) per common share: Net income (loss) from continuing operations $ 0.89 $ 5.07 $ 4.84 Net income (loss) from discontinued operations — (0.06 ) 0.23 Net income (loss) attributable to Bunge common shareholders—diluted $ 0.89 $ 5.01 $ 5.07 (1) Accretion of redeemable noncontrolling interest of $0 million , $2 million and $19 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, related to a non-fair value variable put arrangement whereby the noncontrolling interest holder may have required Bunge to purchase the remaining shares of an oilseed processing operation in Central and Eastern Europe. As further discussed in Note 22, during the second quarter of 2016 Bunge exercised its call option for their 45% interest in the joint venture for approximately $39 million . The transaction concluded in September 2016. Accretion for the respective periods includes the effect of losses incurred by the operations for the years ended December 31, 2016 and 2015 . (2) The weighted-average common shares outstanding-diluted excludes approximately 4 million , 4 million and 3 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the years ended December 31, 2017 , 2016 and 2015 , respectively. (3) Weighted-average common share outstanding-diluted for the year ended December 31, 2017 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares outstanding. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION For the years ended December 31, 2017 , 2016 and 2015 , Bunge recognized approximately $29 million , $44 million and $46 million , respectively, of total compensation expense for awards classified as equity awards related to its stock option and restricted stock unit awards. In 2017, Bunge granted equity awards under the 2016 Equity Incentive Plan (the "2016 EIP"), a shareholder approved plan. Under the 2016 EIP, the Compensation Committee of Bunge's Board of Directors may grant equity based awards to officers, employees, consultants and independent contractors in the form of stock options, restricted stock units (performance based or time-vested) or other equity based awards. The 2016 EIP replaced the 2009 Equity Incentive Plan (the "2009 EIP"), also a shareholder approved plan, under which, beginning May 26, 2016, no further awards may be granted. Shares issued under the 2016 EIP may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner, or a combination thereof. (i) Stock Option Awards—Options to purchase Bunge Limited common shares are granted with an exercise price equal to the grant date fair market value of Bunge common stock, vest over service periods that generally range from one to three years , and expire 10 years from the date of grant. Vesting may be accelerated in certain circumstances as provided in the plans or associated award agreements. Grant date fair value is recognized as compensation expense on a straight-line basis for option grants. (ii) Restricted Stock Units—Restricted stock units ("RSUs") give recipients the right to receive shares of Bunge common stock upon the lapse of related restrictions determined by the Compensation Committee. Restrictions on RSUs may be based on continued service by the recipient through the designated term and/or based on the achievement of certain performance targets. These targets may be financial or market-based, and the number of units actually earned varies based on the level of achievement of predefined goals. Compensation expense in recognized on a straight-line basis over the vesting period for restricted stock units. RSUs generally vest over periods ranging from one to three years . Vesting may be accelerated under certain circumstances as defined in the plans or associated award agreements. RSUs are generally settled in shares of Bunge common stock upon satisfaction of the applicable vesting terms. Where share settlement may be prohibited under local law, RSUs are settled in cash. At the time of settlement, a participant holding a vested restricted stock unit will also be entitled to receive corresponding accrued dividend equivalent share payments. Bunge has also established the Bunge Limited 2017 Non-Employee Directors' Equity Incentive Plan (the "2017 Directors' Plan"), a shareholder approved plan. Under the 2017 Directors' Plan, the Compensation Committee may grant equity based awards to non-employee directors of Bunge Limited. Awards may consist of restricted stock, restricted stock units, deferred restricted stock units and non-statutory stock options. The 2017 Directors' Plan replaced the 2007 Non-Employee Directors Equity Incentive Plan, under which no further awards may be granted. Restricted Stock Units—Restricted stock units granted to non-employee directors generally vest on the first anniversary of the grant date, provided the director continues to serve on the Board until such date, and are settled in shares of Bunge Limited common stock. At the time of settlement, a participant holding a vested restricted stock unit is also entitled to receive corresponding accrued dividend equivalent share payments. The fair value of each stock option granted under any of Bunge's equity incentive plans is estimated on the grant date using the Black Scholes Merton option pricing model. Assumptions for the prior three years are noted in the following table. The expected volatility of Bunge's common shares is a weighted average of historical volatility calculated using the daily closing price of Bunge's shares up to the grant date and implied volatilities on open option contracts on Bunge's stock as of the grant date. Bunge uses historical employee exercise behavior for valuation purposes. The expected option term of granted options represents the period of time that the granted options are expected to be outstanding based on historical experience and giving consideration for the contractual terms, vesting periods and expectations of future employee behavior. The risk-free interest rate is based on U.S. Treasury zero-coupon bonds with a term equal to the expected option term of the respective grants and grant dates. December 31, Assumptions: 2017 2016 2015 Expected option term (in years) 5.86 5.67 5.87 Expected dividend yield 2.09 % 3.04 % 1.67 % Expected volatility 24.85 % 26.06 % 27.47 % Risk-free interest rate 2.21 % 1.41 % 1.73 % A summary of option activity under the plans for the year ended December 31, 2017 is presented below: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2017 5,949,819 $ 69.35 Granted 1,344,100 $ 80.99 Exercised (862,726 ) $ 67.47 Forfeited or expired (214,623 ) $ 76.11 Outstanding at December 31, 2017 6,216,570 $ 71.88 6.09 $ 26 Exercisable at December 31, 2017 3,716,283 $ 73.62 4.41 $ 10 The weighted-average grant date fair value of options granted during the years ended December 31, 2017 , 2016 and 2015 was $17.13 , $8.86 and $19.36 , respectively. The total intrinsic value of options exercised during the years ended December 31, 2017 , 2016 and 2015 was approximately $11 million , $1 million and $11 million , respectively. The excess tax benefit classified as a financing cash flow was not significant for any of the periods presented. At December 31, 2017 , $20 million of total unrecognized compensation cost related to non-vested stock options granted under the equity incentive plan is expected to be recognized over the next two years . A summary of restricted stock unit activity under Bunge's plans for the year ended December 31, 2017 is presented below. Restricted Stock Units Shares Weighted-Average Grant-Date Fair Value Restricted stock units at January 1, 2017 1,544,265 $ 64.85 Granted 694,082 76.79 Vested/issued (2) (343,790 ) 75.22 Forfeited/cancelled (2) (190,553 ) 72.99 Restricted stock units at December 31, 2017 (1) 1,704,004 $ 66.81 (1) Includes accrued unvested dividends, which are payable in Bunge's common shares upon vesting of underlying restricted stock units. (2) During the year ended December 31, 2017 , Bunge issued 267,419 common shares, net of common shares withheld to cover taxes, including related common shares representing accrued dividends, with a weighted-average fair value of $77.12 per share. During the year ended December 31, 2017 , 124,984 performance-based restricted stock units vested. During the year ended December 31, 2017 , Bunge canceled approximately 147,028 shares related to performance-based restricted stock unit awards that did not vest due to non-achievement of performance targets. The fair value of RSU awards is determined based on the market value of the Company's shares on the grant date. The weighted-average grant date fair value of restricted stock units granted during the years ended December 31, 2017 , 2016 and 2015 was $76.79 , $51.42 and $81.97 , respectively. At December 31, 2017 , there was approximately $33 million of total unrecognized compensation cost related to restricted stock units granted under the equity incentive plans, which is expected to be recognized over the next two years . The total fair value of restricted stock units vested during the year ended December 31, 2017 was approximately $28 million . Common Shares Reserved for Share-Based Awards —The 2017 Directors' Plan and the 2016 EIP provide that 120,000 and 5,800,000 common shares, respectively, are to be reserved for grants of stock options, restricted stock units and other awards under the plans. At December 31, 2017 , 101,720 and 3,850,654 common shares were available for future grants under the 2017 Directors' Plan and the 2016 EIP, respectively. No shares are currently available for grant under any other Bunge Limited equity incentive plan. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS Bunge routinely leases storage facilities, transportation equipment and office facilities under operating leases. Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2017 are as follows: (US$ in millions) Minimum 2018 $ 205 2019 197 2020 195 2021 100 2022 70 Thereafter 107 Total $ 874 Net rent expense under non-cancelable operating leases is as follows: Year Ended (US$ in millions) 2017 2016 2015 Rent expense $ 251 $ 213 $ 182 Sublease income (9 ) (9 ) (6 ) Net rent expense $ 242 $ 204 $ 176 In addition, Bunge enters into agricultural partnership agreements for the production of sugarcane. These agreements have an average remaining life of four years and cover approximately 225,000 hectares of land under cultivation. Amounts owed under these agreements are dependent on several variables, including the quantity of sugarcane produced per hectare, the total recoverable sugar ("ATR") per ton of sugarcane produced, and the price for each kilogram of ATR as determined by Consecana, the São Paulo state sugarcane, sugar and ethanol council. During the years ended December 31, 2017 , 2016 and 2015 , Bunge made payments related to these agreements of $105 million , $89 million and $75 million , respectively, for advances on future production. Additionally, $69 million , $64 million and $50 million were included in cost of goods sold in the consolidated statements of income for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Bunge has five reportable segments—Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer—which are organized based upon similar economic characteristics and are similar in nature of products and services offered, the nature of production processes, and the type and class of customer and distribution methods. The Agribusiness segment is characterized by both inputs and outputs being agricultural commodities and thus high volume and low margin. The Edible Oil Products segment involves the processing, production and marketing of products derived from vegetable oils. The Milling Products segment involves the processing, production and marketing of products derived primarily from wheat and corn. The Sugar and Bioenergy segment involves sugarcane growing and milling in Brazil, sugar merchandising in various countries, as well as sugarcane-based ethanol production and corn-based ethanol investments and related activities. Following the classification of the Brazilian fertilizer distribution and North American fertilizer businesses as discontinued operations, the activities of the Fertilizer segment include the production, blending and distribution of fertilizers in Argentina, Uruguay and Paraguay, as well as port operations in Brazil and Argentina. The "Discontinued Operations & Unallocated" column in the following table contains the reconciliation between the totals for reportable segments and Bunge consolidated totals, which consist primarily of amounts attributable to discontinued operations, corporate items not allocated to the operating segments, and inter-segment eliminations. Transfers between the segments are generally valued at market. The segment revenues generated from these transfers are shown in the following table as "Inter-segment revenues." (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Discontinued Operations & Unallocated (1) Total 2017 Net sales to external customers $ 31,741 $ 8,018 $ 1,575 $ 4,054 $ 406 $ — $ 45,794 Inter—segment revenues 4,323 154 5 45 4 (4,531 ) — Foreign currency gains (losses) 85 3 (3 ) 11 (1 ) — 95 Noncontrolling interests (1) (9 ) (8 ) — — (2 ) 5 (14 ) Other income (expense)—net 62 (6 ) (4 ) (3 ) — — 49 Segment EBIT (3) 256 126 63 (12 ) 3 — 436 Discontinued operations (2) — — — — — — — Depreciation, depletion and amortization (267 ) (105 ) (61 ) (164 ) (12 ) — (609 ) Investments in affiliates 411 — — 50 — — 461 Total assets 12,094 2,610 1,460 2,195 330 182 18,871 Capital expenditures 318 136 45 139 9 15 662 2016 Net sales to external customers $ 30,061 $ 6,859 $ 1,647 $ 3,709 $ 403 $ — $ 42,679 Inter—segment revenues 3,867 115 9 13 — (4,004 ) — Foreign currency gains (losses) (7 ) (1 ) (7 ) 9 (2 ) — (8 ) Noncontrolling interests (1) (21 ) (13 ) — — (2 ) 14 (22 ) Other income (expense)—net 24 7 (4 ) (16 ) 1 — 12 Segment EBIT (4) 875 112 131 (4 ) 29 — 1,143 Discontinued operations (2) — — — — — (9 ) (9 ) Depreciation, depletion and amortization (236 ) (94 ) (62 ) (143 ) (12 ) — (547 ) Investments in affiliates 325 — — 48 — — 373 Total assets 12,159 2,329 1,444 2,754 318 184 19,188 Capital expenditures 421 108 75 131 16 33 784 2015 Net sales to external customers $ 31,267 $ 6,698 $ 1,609 $ 3,495 $ 386 $ — $ 43,455 Inter—segment revenues 3,499 178 37 12 — (3,726 ) — Foreign currency gains (losses) 67 — (8 ) (68 ) 1 — (8 ) Noncontrolling interests (1) (9 ) (8 ) — — (1 ) 19 1 Other income (expense)—net (3 ) 4 (3 ) (15 ) (1 ) — (18 ) Segment EBIT (5) 1,108 59 103 (27 ) 5 — 1,248 Discontinued operations (2) — — — — — 35 35 Depreciation, depletion and amortization (234 ) (90 ) (46 ) (160 ) (15 ) — (545 ) Investments in affiliates 249 — — 80 — — 329 Total assets 11,832 1,963 1,343 2,318 299 159 17,914 Capital expenditures 359 63 60 125 17 25 649 (1) Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests. (2) Represents net income (loss) from discontinued operations. (3) 2017 EBIT includes a $9 million gain related to the disposition of a subsidiary in our Agribusiness segment in Brazil, which is recorded in other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $52 million , of which $19 million , $16 million and $17 million are in selling, general and administrative expenses, cost of goods sold and other income (expense)—net, respectively. Of these pre-tax impairment charges, $41 million was allocated to Agribusiness, $7 million to Sugar and Bioenergy, $3 million to Edible Oil Products, and $1 million to Milling Products. (4) 2016 EBIT includes $122 million of gains related to disposition of equity interest in operations in Agribusiness, recorded in other income (expense)-net. In addition, Bunge recorded pre-tax impairment charges of $72 million , $9 million and $6 million in other income (expense)-net, cost of goods sold and selling, general and administrative expenses, respectively. Of these pre-tax impairment charges, $46 million was allocated to Sugar and Bioenergy, $29 million to Agribusiness, $9 million to Fertilizer, $2 million Edible Oils and $1 million to Milling Products. (5) 2015 EBIT includes a $47 million gain on the sale of assets in Agribusiness. In addition, Bunge recorded pre-tax impairment charges of $57 million , of which $24 million , $20 million and $13 million are included in cost of goods sold, selling, general and administrative expenses and other income (expense)-net, respectively. Of these pre-tax impairment charges, $25 million was allocated to Agribusiness and $32 million to Edible Oil Products. Total segment earnings before interest and taxes ("EBIT") is an operating performance measure used by Bunge's management to evaluate segment operating activities. Bunge's management believes total segment EBIT is a useful measure of operating profitability, since the measure allows for an evaluation of the performance of its segments without regard to its financing methods or capital structure. In addition, EBIT is a financial measure that is widely used by analysts and investors in Bunge's industries. A reconciliation of total segment EBIT to net income attributable to Bunge follows: Year Ended December 31, (US$ in millions) 2017 2016 2015 Total segment EBIT from continuing operations $ 436 $ 1,143 $ 1,248 Interest income 38 51 43 Interest expense (263 ) (234 ) (258 ) Income tax (expense) benefit (56 ) (220 ) (296 ) Income (loss) from discontinued operations, net of tax — (9 ) 35 Noncontrolling interests' share of interest and tax 5 14 19 Net income attributable to Bunge $ 160 $ 745 $ 791 Net sales by product group to external customers were as follows: Year Ended December 31, (US$ in millions) 2017 2016 2015 Agricultural Commodity Products $ 31,741 $ 30,061 $ 31,267 Edible Oil Products 8,018 6,859 6,698 Wheat Milling Products 988 1,079 1,054 Corn Milling Products 587 568 555 Sugar and Bioenergy Products 4,054 3,709 3,495 Fertilizer Products 406 403 386 Total $ 45,794 $ 42,679 $ 43,455 Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows: Year Ended December 31, (US$ in millions) 2017 2016 2015 Net sales to external customers: Europe $ 16,313 $ 14,238 $ 14,346 United States 10,128 10,239 10,256 Asia-Pacific 8,613 7,843 8,680 Brazil 7,040 6,604 6,117 Argentina 1,433 1,406 1,490 Canada 1,114 1,120 1,245 Rest of world 1,153 1,229 1,321 Total $ 45,794 $ 42,679 $ 43,455 Year Ended December 31, (US$ in millions) 2017 2016 2015 Long-lived assets (1) : Brazil $ 2,406 $ 2,452 $ 2,086 United States 1,267 1,249 1,130 Europe 1,485 1,107 1,074 Asia-Pacific 483 505 558 Canada 440 378 400 Argentina 216 189 204 Rest of world 341 320 377 Total $ 6,638 $ 6,200 $ 5,829 (1) Long-lived assets include property, plant and equipment, net, goodwill and other intangible assets, net, investments in affiliates and non-current assets held for sale. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Quarter (US$ in millions, except per share data) First Second Third Fourth Year 2017 Net sales $ 11,121 $ 11,645 $ 11,423 $ 11,605 $ 45,794 Gross profit 460 355 490 459 1,764 Income (loss) from discontinued operations, net of tax (6 ) 6 — — — Net income (loss) 48 87 92 (53 ) 174 Net income (loss) attributable to Bunge 47 81 92 (60 ) 160 Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ 0.31 $ 0.48 $ 0.59 $ (0.48 ) $ 0.90 Net income (loss) from discontinued operations (0.04 ) 0.04 — — — Net income (loss) attributable to Bunge common shareholders $ 0.27 $ 0.52 $ 0.59 $ (0.48 ) $ 0.90 Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ 0.31 $ 0.48 $ 0.59 $ (0.48 ) $ 0.89 Net income (loss) from discontinued operations (0.04 ) 0.03 — — — Net income (loss) attributable to Bunge common shareholders $ 0.27 $ 0.51 $ 0.59 $ (0.48 ) $ 0.89 2016 Net sales $ 8,916 $ 10,541 $ 11,423 $ 11,799 $ 42,679 Gross profit 620 530 556 704 2,410 Income (loss) from discontinued operations, net of tax (9 ) (4 ) 5 (1 ) (9 ) Net income (loss) 232 120 130 285 767 Net income (loss) attributable to Bunge 235 121 118 271 745 Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ 1.64 $ 0.81 $ 0.80 $ 1.89 $ 5.13 Net income (loss) from discontinued operations (0.07 ) (0.03 ) 0.03 (0.01 ) (0.06 ) Net income (loss) attributable to Bunge common shareholders $ 1.57 $ 0.78 $ 0.83 $ 1.88 $ 5.07 Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ 1.60 $ 0.81 $ 0.79 $ 1.83 $ 5.07 Net income (loss) from discontinued operations (0.06 ) (0.03 ) 0.04 (0.01 ) (0.06 ) Net income (loss) attributable to Bunge common shareholders $ 1.54 $ 0.78 $ 0.83 $ 1.82 $ 5.01 (1) Earnings per share attributable to Bunge common shareholders for both basic and diluted is computed independently for each period presented. As a result, the sum of the quarterly earnings per share for the years ended December 31, 2017 and 2016 may not equal the total computed for the year. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (US$ in millions) Description Balance at beginning of period Charged to costs and expenses Charged to other accounts (b) Deductions from reserves Balance at end of period FOR THE YEAR ENDED Allowances for doubtful accounts (a) $ 247 64 (47 ) (54 ) (c) $ 210 Allowances for secured advances to suppliers $ 61 11 (21 ) (9 ) $ 42 Allowances for recoverable taxes $ 43 7 (16 ) (2 ) $ 32 Income tax valuation allowances $ 1,078 44 (324 ) — $ 798 FOR THE YEAR ENDED Allowances for doubtful accounts (a) $ 210 45 15 (58 ) (c) $ 212 Allowances for secured advances to suppliers $ 42 1 9 (2 ) $ 50 Allowances for recoverable taxes $ 32 162 1 (160 ) $ 35 Income tax valuation allowances $ 798 (44 ) 85 — $ 839 FOR THE YEAR ENDED DECEMBER 31, 2017 Allowances for doubtful accounts (a) $ 212 42 (1 ) (70 ) (c) $ 183 Allowances for secured advances to suppliers $ 50 20 — (5 ) $ 65 Allowances for recoverable taxes $ 35 12 (1 ) (7 ) $ 39 Income tax valuation allowances $ 839 43 18 — $ 900 (a) This includes an allowance for doubtful accounts for current and non-current trade accounts receivables. (b) This consists primarily of foreign currency translation adjustments. (c) Such amounts include write-offs of uncollectible accounts and recoveries. |
NATURE OF BUSINESS, BASIS OF 38
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation —The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Principles of Consolidation —The accompanying consolidated financial statements include the accounts of Bunge, its subsidiaries and VIEs in which Bunge is considered to be the primary beneficiary, and as a result, include the assets, liabilities, revenues and expenses of all entities over which Bunge exercises control. Equity investments in which Bunge has the ability to exercise significant influence but does not control are accounted for by the equity method of accounting. Investments in which Bunge does not exercise significant influence are accounted for by the cost method of accounting. Intercompany accounts and transactions are eliminated. Bunge consolidates VIEs in which it is considered to be the primary beneficiary and reconsiders such conclusion at each reporting period. An enterprise is determined to be the primary beneficiary if it has a controlling financial interest under U.S. GAAP, defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's business and (b) the obligation to absorb losses of or the right to receive benefits from the VIE that could potentially be significant to the VIE's operations. Performance of that analysis requires the exercise of judgment. Noncontrolling interests in subsidiaries related to Bunge's ownership interests of less than 100% are reported as noncontrolling interests in the consolidated balance sheets. The noncontrolling ownership interests in Bunge's earnings, net of tax, is reported as net (income) loss attributable to noncontrolling interests in the consolidated statements of income. |
Discontinued Operations | Discontinued Operations —In determining whether a disposal group should be presented as discontinued operations, Bunge makes a determination of whether such a group being disposed of comprises a component of the entity, or a group of components of the entity, that represents a strategic shift that has, or will have, a major effect on the Company's operations and financial results. If these determinations are made affirmatively, the results of operations of the group being disposed of (as well as any gain or loss on the disposal transaction) are aggregated for separate presentation apart from the continuing operations of the Company for all periods presented in the consolidated financial statements. |
Reclassifications | Reclassifications —Certain prior year amounts have been reclassified to conform to current year presentation. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires the application of accounting policies that often require management to make substantial judgment or estimation in their application. These judgments and estimations may significantly affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. They may also affect reported amounts of revenues and expenses. Actual results could differ from those estimates. |
Translation of Foreign Currency Financial Statements and Foreign Currency Transactions | Translation of Foreign Currency Financial Statements —Bunge's reporting currency is the U.S. dollar. The functional currency of the majority of Bunge's foreign subsidiaries is their local currency and, as such, amounts included in the consolidated statements of income, comprehensive income (loss), cash flows and changes in equity are translated using average exchange rates during each period. Assets and liabilities are translated at period-end exchange rates and resulting foreign currency translation adjustments are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). Foreign Currency Transactions —Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into their respective functional currencies at exchange rates in effect at the balance sheet date. The resulting exchange gain or loss is included in Bunge's consolidated statements of income as foreign exchange gain (loss) unless the remeasurement gain or loss relates to an intercompany transaction that is of a long-term investment nature and for which settlement is not planned or anticipated in the foreseeable future. Gains or losses arising from translation of such transactions are reported as a component of accumulated other comprehensive income (loss) in Bunge's consolidated balance sheets. |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash and cash equivalents include time deposits and readily marketable securities with original maturity dates of three months or less at the time of acquisition. |
Trade Accounts Receivable and Secured Advances to Suppliers | Trade Accounts Receivable and Secured Advances to Suppliers —Trade accounts receivable and secured advances to suppliers are stated at their historical carrying amounts net of write-offs and allowances for uncollectible accounts. Bunge establishes an allowance for uncollectible trade accounts receivable and secured advances to farmers based on historical experience, farming economics and other market conditions as well as specific customer collection issues. Uncollectible accounts are written off when a settlement is reached for an amount below the outstanding historical balance or when Bunge has determined that collection is unlikely. Secured advances to suppliers bear interest at contractual rates which reflect current market interest rates at the time of the transaction. There are no deferred fees or costs associated with these receivables. As a result, there are no imputed interest amounts to be amortized under the interest method. Interest income is calculated based on the terms of the individual agreements and is recognized on an accrual basis. Bunge follows accounting guidance on the disclosure of the credit quality of financing receivables and the allowance for credit losses, which requires information to be disclosed at disaggregated levels, defined as portfolio segments and classes. Under this guidance, a class of receivables is considered impaired, based on current information and events, if Bunge determines it probable that all amounts due under the original terms of the receivable will not be collected. Recognition of interest income is suspended once the farmer defaults on the originally scheduled delivery of agricultural commodities as the collection of future income is determined not to be probable. No additional interest income is accrued from the point of default until ultimate recovery, at which time amounts collected are credited first against the receivable and then to any unrecognized interest income. |
Inventories | Inventories —Readily marketable inventories ("RMI") are agricultural commodity inventories, such as soybeans, soybean meal, soybean oil, corn and wheat that are readily convertible to cash because of their commodity characteristics, widely available markets and international pricing mechanisms. All of Bunge's RMI are valued at fair value. These agricultural commodity inventories have quoted market prices in active markets, may be sold without significant further processing, and have predictable and insignificant disposal costs. Changes in the fair values of RMI are recognized in earnings as a component of cost of goods sold. Inventories other than RMI are stated at the lower of cost or market by inventory product class. Cost is determined using primarily the weighted-average cost method. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities —Bunge enters into derivative instruments to manage its exposure to movements associated with agricultural commodity prices, transportation costs, foreign currency exchange rates, interest rates, and energy costs. Bunge's use of these instruments is generally intended to mitigate the exposure to market variables (see Note 15). Generally, derivative instruments are recorded at fair value in other current assets or other current liabilities in Bunge's consolidated balance sheets. Bunge assesses at the inception of a hedge whether any derivatives designated as hedges are highly effective in offsetting changes in the hedged items and, on an ongoing basis, qualitatively monitors whether that assertion is still met. The changes in fair values of derivative instruments designated as fair value hedges, along with the gains or losses on the related hedged items are recorded in earnings in the consolidated statements of income in the same caption as the hedged items. The changes in fair values of derivative instruments that are designated as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are reclassified to earnings when the hedged cash flows affect earnings or when the hedge is no longer considered to be effective. In addition, Bunge may designate certain derivative instruments and nonderivative instruments as net investment hedges to hedge the exposure associated with its equity investments in foreign operations. When using forward derivative contracts as hedging instruments in a net investment hedge, all changes in the fair value of the derivative are recorded as a component of accumulated other comprehensive income (loss) in the consolidated balance sheets. |
Marketable Securities and Other Short-Term Investments | Marketable Securities and Other Short-Term Investments —Bunge classifies its marketable securities and short-term investments as available-for-sale, held-to-maturity or trading. Available-for-sale securities are reported at fair value with unrealized gains (losses) included in accumulated other comprehensive income (loss). Held-to-maturity investments represent financial assets in which Bunge has the intent and ability to hold to maturity. Trading securities are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Bunge values its marketable securities at fair value and monitors its held-to-maturity investments for impairment periodically, and recognizes an impairment charge when the decline in fair value of an investment is judged to be other than temporary. |
Recoverable Taxes | Recoverable Taxes —Recoverable taxes include value-added taxes paid upon the acquisition of raw materials and taxable services and other transactional taxes, which can be recovered in cash or as compensation against income taxes or other taxes owed by Bunge, primarily in Brazil and Europe. These recoverable tax payments are included in other current assets or other non-current assets based on their expected realization. In cases where Bunge determines that recovery is doubtful, recoverable taxes are reduced by allowances for the estimated unrecoverable amounts. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net —Property, plant and equipment, net is stated at cost less accumulated depreciation and depletion. Major improvements that extend the life, capacity or efficiency or improve the safety of an asset are capitalized, while maintenance and repairs are expensed as incurred. Costs related to legal obligations associated with the future retirement of capitalized assets are capitalized as part of the cost of the related asset. Bunge generally capitalizes eligible costs to acquire or develop internal-use software that are incurred during the application development stage. Interest costs on borrowings during construction/completion periods of major capital projects are also capitalized. Depreciation is computed based on the straight-line method over the estimated useful lives of the assets. Useful lives for property, plant and equipment are as follows: Years Biological assets 5 - 7 Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 Computer software 3 - 10 Included in property, plant and equipment are biological assets, primarily sugarcane, that are stated at cost less accumulated depletion. Depletion is calculated using the estimated units of production based on the remaining useful life of the growing sugarcane. |
Goodwill | Goodwill —Goodwill represents the cost in excess of the fair value of net assets acquired in a business acquisition. Goodwill is not amortized but is tested annually for impairment or between annual tests if events or circumstances indicate potential impairment. Bunge's annual impairment testing is generally performed during the fourth quarter of its fiscal year. Goodwill is tested for impairment at the reporting unit level, which has been determined to be the Company's operating segments or one level below the operating segments in certain instances (see Note 8). |
Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets | Impairment of Property, Plant and Equipment and Finite Lived Intangible Assets —Finite lived intangible assets include primarily trademarks, customer lists, and port facility usage rights and are amortized on a straight-line basis over their contractual or legal lives (see Note 9) or their estimated useful lives where such lives are not determined by law or contract. Bunge reviews its property, plant and equipment and finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Bunge bases its evaluation of recoverability on such indicators as the nature, future economic benefits, and geographic locations of the assets, historical or future profitability measures, and other external market conditions. If these indicators result in the expected non-recoverability of the carrying amount of an asset or asset group, Bunge evaluates potential impairment using undiscounted estimated future cash flows. If such undiscounted future cash flows during the asset's remaining useful life are below its carrying value, a loss is recognized for the shortfall, measured by the present value of the estimated future cash flows or by third-party appraisals. Bunge records impairments related to property, plant and equipment and finite-lived intangible assets used in the processing of its products in cost of goods sold in its consolidated statements of income. Any impairment of marketing or brand assets is recognized in selling, general and administrative expenses in the consolidated statements of income (see Note 10). Property, plant and equipment and other finite-lived intangible assets to be sold or otherwise disposed of are reported at the lower of carrying amount or fair value less cost to sell. |
Impairment of Investments in Affiliates | Impairment of Investments in Affiliates —Bunge reviews its investments annually or when an event or circumstances indicate that a potential decline in value may be other than temporary. Bunge considers various factors in determining whether to recognize an impairment charge, including the length of time that the fair value of the investment is expected to be below its carrying value, the financial condition, operating performance and near-term prospects of the affiliate and Bunge's intent and ability to hold the investment for a period of time sufficient to allow for recovery of the fair value. (see Note 10 and 11). |
Share-Based Compensation | Share-Based Compensation —Bunge maintains equity incentive plans for its employees and non-employee directors (see Note 25). Bunge accounts for share-based compensation based on the grant date fair value. Share-based compensation expense is recognized on a straight-line basis over the requisite service period. |
Income Taxes | Income Taxes —Income tax expenses and benefits are recognized based on the tax laws and regulations in the jurisdictions in which Bunge's subsidiaries operate. Under Bermuda law, Bunge is not required to pay taxes in Bermuda on either income or capital gains. The provision for income taxes includes income taxes currently payable and deferred income taxes arising as a result of temporary differences between the carrying amounts of existing assets and liabilities in Bunge's financial statements and their respective tax bases. Deferred tax assets are reduced by valuation allowances if current evidence does not suggest that the deferred tax asset will be realized. Accrued interest and penalties related to unrecognized tax benefits are recognized in income tax (expense) benefit in the consolidated statements of income (see Note 14). The calculation of tax liabilities involves management's judgments concerning uncertainties in the application of complex tax regulations in the many jurisdictions in which Bunge operates. Investment tax credits are recorded in income tax expense in the period in which such credits are granted. |
Revenue Recognition | Revenue Recognition —Sales of agricultural commodities, fertilizers and other products are recognized when persuasive evidence of an arrangement exists, the price is determinable, the product has been delivered, title to the product and risk of loss transfer to the customer, which is dependent on the agreed upon sales terms with the customer and when collection of the sale price is reasonably assured. Sales terms provide for passage of title either at the time and point of shipment or at the time and point of delivery of the product being sold. Net sales consist of gross sales less discounts related to promotional programs and sales taxes. Interest income on secured advances to suppliers is included in net sales due to its operational nature (see Note 6). Shipping and handling charges billed to customers are included in net sales and related costs are included in cost of goods sold. |
Research and Development | Research and Development —Research and development costs are expensed as incurred. |
New Accounting Pronouncements | New Accounting Pronouncements —In May 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services. Topic 853 provides guidance for operating entities when they enter into a service concession arrangement with a public-sector grantor who both: • Controls or has the ability to modify or approve the services to be provided with the infrastructure and the related price • Controls, through ownership, beneficial entitlement, or otherwise, any residual interest in the infrastructure at the end of the term of the arrangement. In a service concession arrangement within the scope of Topic 853, the operating entity should not account for the infrastructure as a lease or as property, plant, and equipment. An operating entity should refer to other Topics to account for various aspects of a service concession arrangement. For example, an operating entity should account for revenue relating to construction, upgrade, or operation services in accordance with Topic 606, Revenue from Contracts with Customers . The amendments in this ASU apply to the accounting by operating entities for service concession arrangements within the scope of Topic 853. These updates will be effective when Bunge adopts the updates to Topic 606 on January 1, 2018. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) : Scope of Modification Accounting . The new guidance requires an entity to apply modification accounting to share-based payment awards only if the fair value, vesting conditions, or classification of the award as equity or liability changes as a result of a change in terms or conditions of the award. The amendments in this ASU are effective for Bunge starting January 1, 2018. The amendments in the ASU should be applied prospectively to an award modified on or after the adoption date. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which changes the presentation of net periodic benefit cost related to employer sponsored defined benefit plans and other postretirement benefits. Service cost should be included in the same income statement line item as other compensation costs arising from services rendered during the period, while other components of net periodic benefit pension cost should be presented separately outside of operating income. Additionally, only service costs may be capitalized in assets. The standard is effective for Bunge starting January 1, 2018. Entities should apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component should be applied prospectively. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements. In February 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The new guidance clarifies the scope of Subtopic 610-20 on the sale or transfer of nonfinancial assets to noncustomers, including partial sales. The standard is effective for Bunge starting January 1, 2018. The new requirements may be implemented either retrospectively to each period presented in the financial statements, or retrospectively with a cumulative-effect adjustment to retained earnings at the date of initial application. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The new guidance eliminates Step 2 from the goodwill impairment test. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The standard is effective for annual or interim impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted. The new requirements should be implemented on a prospective basis. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendments provide that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. Otherwise, to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The standard is effective for Bunge starting January 1, 2018. The new requirements should be implemented on a prospective basis. The adoption of this standard is not expected to have a material impact on Bunge’s consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the Emerging Issues Task Force) . Similar to ASU 2016-15 as described below, this update attempts to reduce diversity in practice and provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. The guidance will be effective for Bunge starting January 1, 2018. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory, which eliminates an exception in the current guidance prohibiting a reporting entity to recognize income taxes consequences of an intra-entity transfer of an asset other than inventory, such as transfers of intellectual property and property, plant, and equipment, until the asset has been sold to an outside party. The new guidance does not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer. ASU 2016-16 will be effective for Bunge starting January 1, 2018. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). This update attempts to reduce diversity in practice by providing guidance on the classification of certain cash receipts and payments in the statement of cash flows. The new standard is effective for Bunge starting January 1, 2018. The most significant change upon adoption of this standard is expected to be the presentation of cash flows in relation to the Company’s trade receivables securitization program. Particularly impacted are the cash receipts from payments on the deferred purchase price, which will be classified as cash inflows from investing activities, whereas today they are classified as inflows from operating activities. The deferred purchase price is generally between 10% and 15% of receivables sold. See Note 18 for additional information on our trade receivables securitization program. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) , which introduces a new accounting model, referred to as the current expected credit losses (CECL) model, for estimating credit losses on certain financial instruments and expands the disclosure requirements for estimating such credit losses. Under the new model, an entity is required to estimate the credit losses expected over the life of an exposure (or pool of exposures). The guidance also amends the current impairment model for debt securities classified as available-for-sale securities. The new guidance will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Bunge is evaluating the impact of this standard on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under the new provisions, all lessees will report on the balance sheet a right-of-use asset and a liability for the obligation to make payments with the exception of those leases with a term of 12 months or less. The new provisions will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Bunge has established a project implementation group and is evaluating the impact this guidance will have on its consolidated financial statements and related disclosures. Initial scoping reviews are underway, along with planning of the implementation of a new system to perform the reporting and disclosure are underway. The Company is evaluating the change to existing processes and controls. In January 2016, the FASB issued ASU 2016-01, Financial Instruments -Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which amends the guidance relating to the classification and measurement of financial instruments. Changes to the current guidance primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The new standard is effective for Bunge starting January 1, 2018. The adoption of this standard is not expected to have a material impact on Bunge's consolidated financial statements. In May 2014, the FASB amended ASC (Topic 605) Revenue Recognition and created ASC (Topic 606): Revenue from Contracts with Customers . The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. During 2016, the FASB issued additional implementation guidance and practical expedients in ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing , ASU 2016-12, Revenue from Contracts with Customers (Topic 606) : Narrow-Scope Improvements and Practical Expedients , and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , to improve the guidance. The Company adopted the standard on January 1, 2018 under the modified retrospective approach, applying it only to contracts open as of that date. The impact of adopting the standard has not resulted in a change in accounting treatment for any of the Company’s revenue streams, with the exception of ocean freight voyage charter services. Under ASC 605, the Company recognized revenue and the related cost of goods sold upon loading of the goods onto the vessel, which generally coincides with receipt of payment by the customer. Under ASC 606, the revenue and the related cost of goods sold will instead be recognized over time as the voyages occur and the related expenses are incurred, respectively. As a result of this change in timing, the adoption of the standard resulted in a cumulative-effect adjustment credit to opening retained earnings that was not material. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements —In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvement to Accounting for Hedging Activities , which better aligns hedge accounting with an organization’s risk management activities in its financial statements. In addition, the ASU simplifies the application of hedge accounting guidance in areas where practice issues exist. Bunge early adopted this ASU in the fourth quarter of 2017. The adoption did not have a material impact on Bunge's consolidated financial statements. |
NATURE OF BUSINESS, BASIS OF 39
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of useful lives for property, plant and equipment | Useful lives for property, plant and equipment are as follows: Years Biological assets 5 - 7 Buildings 10 - 50 Machinery and equipment 7 - 25 Furniture, fixtures and other 3 - 20 Computer software 3 - 10 |
GLOBAL COMPETITIVENESS PROGRAM
GLOBAL COMPETITIVENESS PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of global competitiveness program | The table below sets forth, by type and segment, the costs recorded for the Global Competitiveness Program and other associated initiatives during the year ended December 31, 2017 : (US$ in millions) Severance and Other Employee Benefit Costs Other Program Costs Total Program Costs Agribusiness Segment $ 39 $ 10 $ 49 Edible Oils Segment 12 4 16 Milling Segment 6 1 7 Sugar and Bioenergy Segment 1 3 4 Fertilizer Segment 1 — 1 Total $ 59 $ 18 $ 77 |
Schedule of restructuring reserve | The following table sets forth the activity affecting the liability for severance and other employee benefit costs related to the Global Competitiveness Program and other associated initiatives, which is recorded in "Other current liabilities" on the consolidated balance sheet. (US$ in millions) Severance and Other Employee Benefit Costs Balance at December 31, 2016 $ — Charges incurred 72 Cash payments (17 ) Pension liability (1) (10 ) Balance at December 31, 2017 $ 45 (1) Included in severance and other employee benefit costs is approximately $10 million of additional pension expense incurred as part of the voluntary early retirement program. This amount is accrued with the total Bunge pension liability in "Other noncurrent liabilities" in the consolidated balance sheet. |
TRADE STRUCTURED FINANCE PROG41
TRADE STRUCTURED FINANCE PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade Structured Finance Program [Abstract] | |
Summary of assets and liabilities related to the trade structured finance program | The table below summarizes the assets and liabilities included in the consolidated balance sheets and the associated fair value amounts at December 31, 2017 and December 31, 2016 , related to the program. The fair values approximated the carrying amount of the related financial instruments and are all Level 2 measurements (see Note 15). December 31, (US$ in millions) 2017 2016 Current assets: Carrying value of time deposits $ — $ 64 Non-current assets: Carrying value of time deposits $ 315 $ 464 Current liabilities: Carrying value of letters of credit obligations $ 315 $ 528 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories by segment | All other inventories are carried at lower of cost or net realizable value. December 31, (US$ in millions) 2017 2016 Agribusiness (1) $ 4,022 $ 3,741 Edible Oil Products (2) 458 404 Milling Products 196 167 Sugar and Bioenergy (3) 333 406 Fertilizer 65 55 Total $ 5,074 $ 4,773 (1) Includes RMI of $3,865 million and $3,593 million at December 31, 2017 and 2016 , respectively. Of these amounts $2,694 million and $2,523 million can be attributable to merchandising activities at December 31, 2017 and 2016 , respectively. (2) Includes RMI of bulk soybean and canola oil in the aggregate amount of $115 million and $123 million at December 31, 2017 and 2016 , respectively. (3) Includes sugar RMI of $76 million and $139 million at December 31, 2017 and 2016 , respectively. Of these amounts, $73 million and $134 million can be attributable to merchandising activities at December 31, 2017 and 2016 , respectively. |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other current assets | Other current assets consist of the following: December 31, (US$ in millions) 2017 2016 Unrealized gains on derivative contracts, at fair value $ 910 $ 1,327 Prepaid commodity purchase contracts (1) 282 273 Secured advances to suppliers, net (2) 412 601 Recoverable taxes, net 488 467 Margin deposits 258 251 Marketable securities, at fair value and other short-term investments 213 94 Deferred purchase price receivable, at fair value (3) 107 87 Income taxes receivable 192 181 Prepaid expenses 125 148 Other 240 216 Total $ 3,227 $ 3,645 (1) Prepaid commodity purchase contracts represent advance payments against contracts for future delivery of specified quantities of agricultural commodities. (2) Bunge provides cash advances to suppliers, primarily Brazilian farmers of soybeans and sugarcane, to finance a portion of the suppliers' production costs. Bunge does not bear any of the costs or operational risks associated with the related growing crops. The advances are largely collateralized by future crops and physical assets of the suppliers, carry a local market interest rate, and settle when the farmer's crop is harvested and sold. The secured advances to farmers are reported net of allowances of $1 million and $1 million at December 31, 2017 and December 31, 2016 , respectively. Interest earned on secured advances to suppliers of $44 million , $38 million and $38 million , for the years ended December 31, 2017 , 2016 and 2015 , respectively, is included in net sales in the consolidated statements of income. (3) Deferred purchase price receivable represents additional credit support for the investment conduits in Bunge's accounts receivables sales program (see Note 18). |
Summary of marketable securities and other short-term investments | The following is a summary of amounts recorded on the consolidated balance sheets for marketable securities and other short-term investments. December 31, (US$ in millions) 2017 2016 Foreign government securities $ 145 $ 28 Corporate debt securities 59 57 Certificate of deposits/time deposits — 7 Other 9 2 Total marketable securities and other short-term investments $ 213 $ 94 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Property, plant and equipment consist of the following: December 31, (US$ in millions) 2017 2016 Land $ 390 $ 356 Biological assets 709 613 Buildings 2,116 1,934 Machinery and equipment 5,601 5,055 Furniture, fixtures and other 579 514 Construction in progress 517 765 9,912 9,237 Less: accumulated depreciation and depletion (4,602 ) (4,138 ) Total $ 5,310 $ 5,099 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in the carrying amount of goodwill by segment | Changes in the carrying value of goodwill by segment for the years ended December 31, 2017 and 2016 are as follows: (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Total Goodwill, gross of impairments 123 78 234 514 1 950 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2015, net 121 65 231 — 1 418 Goodwill acquired — 13 — — — 13 Measurement period adjustments — — (76 ) — — (76 ) Tax benefit on goodwill amortization (1) (3 ) — — — — (3 ) Foreign currency translation 8 — 13 — — 21 Goodwill, gross of impairments 128 91 171 514 1 905 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2016, net 126 78 168 — 1 373 Goodwill acquired (2) 103 8 — — — 111 Foreign currency translation 22 8 1 — — 31 Goodwill, gross of impairments 253 107 172 514 1 1,047 Accumulated impairment losses (2 ) (13 ) (3 ) (514 ) — (532 ) Balance, December 31, 2017, net $ 251 $ 94 $ 169 $ — $ 1 $ 515 (1) Bunge's Brazilian subsidiary's tax deductible goodwill is in excess of its book goodwill. For financial reporting purposes for goodwill acquired prior to 2009, the tax benefits attributable to the excess tax goodwill are first used to reduce associated goodwill to zero , prior to recognizing any income tax benefit in the consolidated statements of income. (2) Agribusiness goodwill relates to the 2017 acquisition of two oilseed processing plants and related operations in the Netherlands and France pursuant to an agreement with Cargill. |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of other intangible assets | Other intangible assets consist of the following: December 31, (US$ in millions) 2017 2016 Gross carrying amount: Trademarks/brands, finite-lived $ 173 $ 141 Licenses 8 7 Port rights 155 156 Other 237 254 573 558 Less accumulated amortization: Trademarks/brands, finite-lived (72 ) (64 ) Licenses (5 ) (5 ) Port rights (31 ) (23 ) Other (142 ) (130 ) (250 ) (222 ) Intangible assets, net of accumulated amortization $ 323 $ 336 |
IMPAIRMENTS (Tables)
IMPAIRMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
IMPAIRMENTS | |
Assets measured at fair value on a nonrecurring basis | The following table summarizes assets measured at fair value on a nonrecurring basis subsequent to initial recognition at December 31, 2017 , 2016 and 2015 , respectively. For additional information on Level 1, 2 and 3 inputs see Note 15. (US$ in millions) Fair Value December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Impairment Losses Property, plant and equipment $ 16 $ — $ 16 $ — $ (25 ) Investment in affiliates $ — $ — $ — $ — $ (17 ) Intangibles $ — $ — $ — $ — $ (7 ) Other current assets $ — $ — $ — $ — $ (2 ) Other non-current assets $ 1 $ — $ 1 $ — $ — Fair Value December 31, 2016 Carrying Value Level 1 Level 2 Level 3 Impairment Losses Property, plant and equipment $ 7 $ — $ — $ 7 $ (9 ) Intangibles $ — $ — $ — $ — $ (12 ) Investment in affiliates and other investments $ 13 $ — $ — $ 13 $ (59 ) Fair Value December 31, 2015 Carrying Value Level 1 Level 2 Level 3 Impairment Losses Property, plant and equipment $ 12 $ — $ — $ 12 $ (15 ) Goodwill (see Note 8) $ — $ — $ — $ — $ (13 ) Investments in affiliates $ 3 $ — $ — $ 3 $ (14 ) |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of other non-current assets | Other non-current assets consist of the following: December 31, (US$ in millions) 2017 2016 Recoverable taxes, net (1) $ 155 $ 139 Judicial deposits (1) 140 129 Other long-term receivables 12 23 Income taxes receivable (1) 307 261 Long-term investments 66 54 Affiliate loans receivable 24 25 Long-term receivables from farmers in Brazil, net (1) 131 133 Other 193 163 Total $ 1,028 $ 927 (1) These non-current assets arise primarily from Bunge's Brazilian operations and their realization could take several years. |
Summary of recorded investment in long-term receivables and the related allowance amounts from Brazilian farmers | The table below summarizes Bunge's recorded investment in long-term receivables from farmers in Brazil and the related allowance amounts. December 31, 2017 December 31, 2016 (US$ in millions) Recorded Investment Allowance Recorded Investment Allowance For which an allowance has been provided: Legal collection process (1) $ 98 $ 91 $ 84 $ 78 Renegotiated amounts (2) 25 22 36 31 For which no allowance has been provided: Legal collection process (1) 76 — 60 — Renegotiated amounts (2) 17 — 16 — Other long-term receivables 28 — 46 — Total $ 244 $ 113 $ 242 $ 109 (1) All amounts in legal process are considered past due upon initiation of legal action. (2) All renegotiated amounts are current on repayment terms. |
Summary of the activity in the allowance for doubtful accounts related to long-term receivables from Brazilian farmers | The table below summarizes the activity in the allowance for doubtful accounts related to long-term receivables from farmers in Brazil. December 31, (US$ in millions) 2017 2016 Beginning balance $ 109 $ 100 Bad debt provisions 19 3 Recoveries (12 ) (12 ) Write-offs (1 ) (1 ) Foreign currency translation (2 ) 19 Ending balance $ 113 $ 109 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of other current liabilities | Other current liabilities consist of the following: December 31, (US$ in millions) 2017 2016 Accrued liabilities $ 606 $ 548 Unrealized losses on derivative contracts at fair value 897 1,203 Advances on sales 406 395 Other 277 330 Total $ 2,186 $ 2,476 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of income from continuing operations before income tax | The components of income from operations before income tax are as follows: Year Ended December 31, (US$ in millions) 2017 2016 2015 United States $ 21 $ 102 $ 207 Non-United States 209 894 844 Total $ 230 $ 996 $ 1,051 |
Components of income tax expense (benefit) | The components of the income tax expense (benefit) are: Year Ended December 31, (US$ in millions) 2017 2016 2015 Current: United States $ 45 $ (76 ) $ 35 Non-United States 34 170 245 79 94 280 Deferred: United States 20 38 36 Non-United States (43 ) 88 (20 ) (23 ) 126 16 Total $ 56 $ 220 $ 296 |
Reconciliation of income tax expense (benefit) | Reconciliation of the income tax expense (benefit) if computed at the U.S. Federal income tax rate to Bunge's reported income tax expense (benefit) is as follows: Year Ended December 31, (US$ in millions) 2017 2016 2015 Income from operations before income tax $ 230 $ 996 $ 1,051 Income tax rate 35 % 35 % 35 % Income tax expense at the U.S. Federal tax rate 80 348 368 Adjustments to derive effective tax rate: Foreign earnings taxed at different statutory rates (42 ) (68 ) (16 ) Valuation allowances 43 (44 ) 44 Fiscal incentives (1) (42 ) (34 ) (41 ) Foreign exchange on monetary items (9 ) 5 (5 ) Tax rate changes (62 ) 4 1 Non-deductible expenses 27 3 16 Uncertain tax positions (48 ) 89 (14 ) Deferred balance adjustments (4 ) — (8 ) Equity distributions — — (64 ) Transition tax 105 — — Tax exempt investments (14 ) (12 ) — Tax credits (8 ) (89 ) — Incremental tax on future distributions 27 — — Other 3 18 15 Income tax (benefit) expense $ 56 $ 220 $ 296 (1) Fiscal incentives predominantly relate to investment incentives in Brazil that are exempt from Brazilian income tax. |
Components of deferred tax assets and liabilities and related valuation allowances | The primary components of the deferred tax assets and liabilities and the related valuation allowances are as follows: December 31, (US$ in millions) 2017 2016 Deferred income tax assets: Net operating loss carryforwards $ 964 $ 944 Employee benefits 106 158 Tax credit carryforwards 13 10 Inventories 50 18 Intangibles — 9 Accrued expenses and other 388 231 Total deferred tax assets 1,521 1,370 Less valuation allowances (900 ) (839 ) Deferred tax assets, net of valuation allowance 621 531 Deferred income tax liabilities: Property, plant and equipment 251 200 Undistributed earnings of affiliates 35 13 Investments 17 33 Intangibles 24 — Total deferred tax liabilities 327 246 Net deferred tax assets $ 294 $ 285 |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (US$ in millions) 2017 2016 2015 Balance at January 1, $ 409 $ 51 $ 72 Additions based on tax positions related to the current year 34 9 6 Additions based on acquisitions — 2 10 Additions based on tax positions related to prior years 13 374 1 Reductions for tax positions of prior years (43 ) — (14 ) Settlement or clarification from tax authorities — (1 ) (6 ) Expiration of statute of limitations (32 ) (9 ) (5 ) Foreign currency translation 40 (17 ) (13 ) Balance at December 31, $ 421 $ 409 $ 51 |
Tax years subject to income tax examination by tax authorities | The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities: Open Tax Years North America 2010 - 2017 South America 2006 - 2017 Europe 2005 - 2017 Asia-Pacific 2003 - 2017 As of December 31, 2017 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued the outstanding claims (including applicable interest and penalties) as of: December 31, (US$ in millions) Years Examined 2017 2016 ICMS 1990 to Present $ 281 $ 241 PIS/COFINS 2004 through 2012 $ 200 $ 154 |
FINANCIAL INSTRUMENTS AND FAI51
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | |
Schedule of assets and liabilities accounted for at fair value on a recurring basis | The following table sets forth, by level, Bunge's assets and liabilities that were accounted for at fair value on a recurring basis. Fair Value Measurements at Reporting Date December 31, 2017 December 31, 2016 (US$ in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Readily marketable inventories (Note 5) $ — $ 3,691 $ 365 $ 4,056 $ — $ 3,618 $ 237 $ 3,855 Trade accounts receivable (1) — 5 5 — 6 — 6 Unrealized gain on hedge accounting derivative contracts (2) : Interest Rate — — — — — 1 — 1 Foreign currency — 18 — 18 — 29 — 29 Unrealized gain on economic derivative contracts (2) : Interest rate — 4 — 4 — 1 — 1 Foreign currency — 321 — 321 — 312 — 312 Commodities 115 389 19 523 421 431 96 948 Freight 18 — 8 26 16 — — 16 Energy 18 — — 18 23 1 — 24 Deferred purchase price receivable (Note 18) — 107 — 107 — 87 — 87 Other (3) 15 234 — 249 18 108 — 126 Total assets $ 166 $ 4,769 $ 392 $ 5,327 $ 478 $ 4,594 $ 333 $ 5,405 Liabilities: Trade accounts payable (1) $ — $ 467 $ 116 $ 583 $ — $ 478 $ 44 $ 522 Unrealized loss on hedge accounting derivative contracts (4) : Interest rate — 31 — 31 — 18 — 18 Foreign currency — 2 — 2 — — — — Unrealized loss on economic derivative contracts (4) : Interest rate — 1 — 1 — — — — Foreign currency 1 430 — 431 — 233 — 233 Commodities 141 271 20 432 356 444 144 944 Freight 15 — 3 18 14 — 1 15 Energy 9 2 2 13 9 — 2 11 Total liabilities $ 166 $ 1,204 $ 141 $ 1,511 $ 379 $ 1,173 $ 191 $ 1,743 (1) These receivables and payables are hybrid financial instruments for which Bunge has elected the fair value option. (2) Unrealized gains on derivative contracts are generally included in other current assets. There were $0 million and $5 million included in other non-current assets at December 31, 2017 and December 31, 2016 , respectively. (3) Other includes the fair values of marketable securities and investments in other current assets and other non-current assets. (4) Unrealized losses on derivative contracts are generally included in other current liabilities. There were $31 million and $18 million included in other non-current liabilities at December 31, 2017 and December 31, 2016 , respectively. |
Reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The tables below present reconciliations for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2017 and 2016 . These instruments were valued using pricing models that management believes reflect the assumptions that would be used by a marketplace participant. Year Ended December 31, 2017 (US$ in millions) Derivatives, Net (1) Readily Marketable Inventories (1) Trade Accounts Receivable/ Payable, Net (1) Total Balance, January 1, 2017 $ (51 ) $ 237 $ (44 ) $ 142 Total gains and losses (realized/unrealized) included in cost of goods sold (31 ) 142 13 124 Purchases 11 1,551 (469 ) 1,093 Sales — (2,041 ) — (2,041 ) Issuances (7 ) — — (7 ) Settlements 67 — 441 508 Transfers into Level 3 (9 ) 701 (59 ) 633 Transfers out of Level 3 22 (225 ) 2 (201 ) Balance, December 31, 2017 $ 2 $ 365 $ (116 ) $ 251 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, include gains/(losses) of $1 million , $11 million and $0 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2017 . Year Ended December 31, 2016 (US$ in millions) Derivatives, Net (1) Readily Marketable Inventories (1) Trade Accounts Receivable/ Payable, Net (1) Total Balance, January 1, 2016 $ 167 $ 245 $ (44 ) $ 368 Total gains and losses (realized/unrealized) included in cost of goods sold (88 ) 162 24 98 Purchases — 1,107 (222 ) 885 Sales — (1,400 ) — (1,400 ) Issuances (1 ) — — (1 ) Settlements (133 ) — 206 73 Transfers into Level 3 (4 ) 760 (78 ) 678 Transfers out of Level 3 8 (637 ) 70 (559 ) Balance, December 31, 2016 $ (51 ) $ 237 $ (44 ) $ 142 1) Derivatives, net, readily marketable inventories, and trade accounts receivable/payable net, includes gains/(losses) of $(1) million , $(41) million and $1 million , respectively, that are attributable to the change in unrealized gains/(losses) relating to Level 3 assets and liabilities still held at December 31, 2016 . |
Summary of outstanding derivative instruments | The table below summarizes the volume of economic derivatives as of December 31, 2017 and 2016. For those contracts traded bilaterally through the over-the-counter markets (forwards and swaps) the gross position is provided. For exchange traded (futures, FRAs, FFAs and options) and cleared positions (energy swaps), the net position is provided. December 31, 2017 2016 Unit of Measure (US$ in millions) Long (Short) Long (Short) Interest rate Swaps $ 713 $ (1,611 ) $ 569 $ (500 ) $ Notional Futures $ — $ (2 ) $ 5 $ — $ Notional FRAs $ — $ (1,424 ) $ 979 $ (68 ) $ Notional Currency Forwards $ 9,784 $ (9,668 ) $ 6,126 $ (8,889 ) $ Notional Swaps $ 192 $ (148 ) $ 157 $ (129 ) $ Notional Futures $ — $ (58 ) $ — $ — $ Notional Options $ 521 $ (471 ) $ 268 $ (126 ) Delta Agricultural commodities Forwards 23,438,004 (30,055,331 ) 25,960,476 (35,672,883 ) Metric Tons Swaps 65,045 (5,279,181 ) 1,442,144 (3,326,874 ) Metric Tons Futures 4,520,267 — — (6,914,908 ) Metric Tons Options 828,296 — — (334,494 ) Metric Tons Ocean freight FFA — (3,617 ) — (3,165 ) Hire Days FFA options 892 — — (467 ) Hire Days Natural gas Swaps 3,519,668 — 1,351,351 — MMBtus Futures 2,691,350 — 3,930,000 — MMBtus Energy - other Forwards 5,534,290 — 6,048,869 — Metric Tons Futures 1,394 — 1,777 — Metric Tons Options — — — (1,285 ) Metric Tons Swaps 223,600 — 215,100 — Metric Tons The table below provides information about the balance sheet values of hedged items and the notional amount of derivatives used in hedging strategies. December 31, (US$ in millions) 2017 2016 Hedging instrument type: Fair value hedges of interest rate risk Carrying value of hedged debt $ 2,071 $ 1,868 Cumulative adjustment to long-term debt from application of hedge accounting $ (31 ) $ (17 ) Interest rate swap - notional amount $ 2,109 $ 1,893 Cash flow hedges of currency risk Foreign currency forward - notional amount $ 237 $ 181 Net investment hedges Foreign currency forward - notional amount $ 1,000 $ — Carrying value of non-derivative hedging instrument $ 725 $ 840 |
Summary of effect of derivative instruments designated as fair value hedges and undesignated derivative instruments on consolidated statements of income | The table below summarizes the net effect of derivative instruments on the consolidated statements of income for the years ended December 31, 2017, 2016 and 2015. Gain (Loss) Recognized in Income on Derivative Instruments Year Ended December 31, (US$ in millions) 2017 2016 2015 Income statement classification Type of derivative Cost of goods sold Hedge accounting Foreign currency $ — $ — $ — Economic hedges Foreign currency 1 772 (620 ) Commodities 676 (618 ) 1,062 Freight 4 8 6 Energy 3 19 (25 ) Total Cost of goods sold $ 684 $ 181 $ 423 Interest expense Hedge accounting Interest rate $ 13 $ 5 $ — Economic hedges Interest rate — (4 ) — Total Interest expense $ 13 $ 1 $ — Foreign currency gains (losses) Economic hedges Foreign currency $ 22 $ 267 $ (302 ) Other comprehensive income (loss) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 14 $ 48 $ (76 ) Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (8 ) $ (394 ) $ 223 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ (111 ) $ 41 $ — Amounts released from accumulated other comprehensive income (loss) during the period Fair value hedge of foreign currency risk $ — $ — $ — Cash flow hedge of foreign currency risk 37 16 (76 ) Net investment hedge — — — Total $ 37 $ 16 $ (76 ) |
Summary of effect on financial instruments | The table below summarizes the net effect of derivative instruments on the consolidated statements of income for the years ended December 31, 2017, 2016 and 2015. Gain (Loss) Recognized in Income on Derivative Instruments Year Ended December 31, (US$ in millions) 2017 2016 2015 Income statement classification Type of derivative Cost of goods sold Hedge accounting Foreign currency $ — $ — $ — Economic hedges Foreign currency 1 772 (620 ) Commodities 676 (618 ) 1,062 Freight 4 8 6 Energy 3 19 (25 ) Total Cost of goods sold $ 684 $ 181 $ 423 Interest expense Hedge accounting Interest rate $ 13 $ 5 $ — Economic hedges Interest rate — (4 ) — Total Interest expense $ 13 $ 1 $ — Foreign currency gains (losses) Economic hedges Foreign currency $ 22 $ 267 $ (302 ) Other comprehensive income (loss) Gains and losses on derivatives used as cash flow hedges of foreign currency risk included in other comprehensive income (loss) during the period $ 14 $ 48 $ (76 ) Gains and losses on derivatives used as net investment hedges included in other comprehensive income (loss) during the period $ (8 ) $ (394 ) $ 223 Foreign currency gains and losses on intercompany loans used as net investment hedges included in other comprehensive income (loss) during the period $ (111 ) $ 41 $ — Amounts released from accumulated other comprehensive income (loss) during the period Fair value hedge of foreign currency risk $ — $ — $ — Cash flow hedge of foreign currency risk 37 16 (76 ) Net investment hedge — — — Total $ 37 $ 16 $ (76 ) |
SHORT-TERM DEBT AND CREDIT FA52
SHORT-TERM DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Short-term Debt [Abstract] | |
Short-term debt | December 31, (US$ in millions) 2017 2016 Lines of credit: Unsecured, variable interest rates from 1.27% to 33.00% $ 304 $ 257 Total short-term debt (1) $ 304 $ 257 (1) Includes $179 million and $148 million of local currency borrowings in certain Central and Eastern European, South American, African and Asia-Pacific countries at a weighted average interest rate of 15.03% and 13.63% as of December 31, 2017 and December 31, 2016 , respectively. |
LONG-TERM DEBT AND CREDIT FAC53
LONG-TERM DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt obligations are summarized below. December 31, (US$ in millions) 2017 2016 Term loan due 2019—three-month Yen LIBOR plus 0.75% (Tranche A) $ 253 $ 243 Term loan due 2019—fixed Yen interest rate of 0.96% (Tranche B) 53 51 Term loan due 2019—three-month LIBOR plus 1.30% (Tranche C) 85 85 5.90% Senior Notes due 2017 — 250 3.20% Senior Notes due 2017 — 600 8.50% Senior Notes due 2019 599 600 3.50% Senior Notes due 2020 497 497 3.00% Senior Notes due 2022 396 — 1.85% Senior Notes due 2023— Euro 960 843 3.25% Senior Notes due 2026 694 694 3.75% Senior Notes due 2027 593 — Other 45 144 Subtotal 4,175 4,007 Less: Current portion of long-term debt (15 ) (938 ) Total long-term debt (1) $ 4,160 $ 3,069 (1) Includes secured debt of $24 million and $34 million at December 31, 2017 and December 31, 2016 , respectively. |
Schedule of carrying amounts and fair values of long-term debt | The carrying amounts and fair values of long-term debt are as follows: December 31, 2017 December 31, 2016 (US$ in millions) Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) Long-term debt, including current portion $ 4,175 $ 4,337 $ 4,007 $ 4,163 |
Principal maturities of long-term debt | Principal maturities of long-term debt at December 31, 2017 are as follows: (US$ in millions) 2018 $ 18 2019 1,009 2020 517 2021 16 2022 406 Thereafter 2,259 Total (1) $ 4,225 (1) Excludes components of long-term debt attributable to fair value hedge accounting of $31 million and deferred financing fees and unamortized premiums of $19 million . |
TRADE RECEIVABLES SECURITIZAT54
TRADE RECEIVABLES SECURITIZATION PROGRAM (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Summary of cash flows and discounts of trade receivables securitization program | The trade receivables sold under the program are subject to specified eligibility criteria, including eligible currencies, and country and obligor concentration limits. December 31, (US$ in millions) 2017 2016 Receivables sold which were derecognized on Bunge balance sheet $ 810 $ 628 Deferred purchase price included in other current assets $ 107 $ 87 The table below summarizes the cash flows and discounts of Bunge's trade receivables associated with the Program. Servicing fees under the Program were not significant in any period. Years Ended December 31, (US$ in millions) 2017 2016 2015 Gross receivables sold $ 10,022 $ 9,405 $ 10,601 Proceeds received in cash related to transfer of receivables $ 9,734 $ 9,197 $ 10,396 Cash collections from customers on receivables previously sold $ 9,659 $ 9,176 $ 10,542 Discounts related to gross receivables sold included in SG&A $ 9 $ 6 $ 5 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EMPLOYEE BENEFIT PLANS | |
Changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status of plans recognized in the balance sheet | The following table sets forth in aggregate the changes in the defined benefit pension and postretirement benefit plans' benefit obligations, assets and funded status at December 31, 2017 or 2016 . A measurement date of December 31 was used for all plans. Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2017 2016 2017 2016 Change in benefit obligations: Benefit obligation at the beginning of year $ 941 $ 864 $ 74 $ 56 Service cost 33 32 — — Interest cost 36 35 8 7 Plan curtailments (31 ) (3 ) — — Special termination benefits 9 — — Actuarial (gain) loss, net 100 31 (11 ) 8 Employee contributions 6 6 1 1 Net transfers in (out) 3 8 — — Plan settlements — (5 ) — — Benefits paid (35 ) (21 ) (4 ) (7 ) Expenses paid (4 ) (2 ) — — Impact of foreign exchange rates 15 (4 ) (1 ) 9 Benefit obligation at the end of year $ 1,073 $ 941 $ 67 $ 74 Change in plan assets: Fair value of plan assets at the beginning of year $ 740 $ 689 $ — $ — Actual return on plan assets 102 53 — — Employer contributions 77 20 3 6 Employee contributions 6 6 1 1 Plan settlements — (4 ) — — Effect of plan combinations — 1 — — Benefits paid (35 ) (21 ) (4 ) (7 ) Expenses paid (4 ) (3 ) — — Impact of foreign exchange rates 10 (1 ) — — Fair value of plan assets at the end of year $ 896 $ 740 $ — $ — Funded (unfunded) status and net amounts recognized: Plan assets (less than) in excess of benefit obligation $ (177 ) $ (201 ) $ (67 ) $ (74 ) Net (liability) asset recognized in the balance sheet $ (177 ) $ (201 ) $ (67 ) $ (74 ) Amounts recognized in the balance sheet consist of: Non-current assets $ 18 $ 16 $ — Current liabilities (6 ) (5 ) (7 ) (8 ) Non-current liabilities (189 ) (212 ) (60 ) (66 ) Net liability recognized $ (177 ) $ (201 ) $ (67 ) $ (74 ) |
Schedule of effects of one-percentage point change in assumed healthcare cost trend rates | A one-percentage point change in assumed healthcare cost trend rates would have the following effects: (US$ in millions) One-percentage point increase One-percentage point decrease Effect on total service and interest cost $ 1 $ (1 ) Effect on postretirement benefit obligation $ 5 $ (4 ) |
Components of net periodic benefit costs | The components of net periodic benefit costs are as follows for defined benefit pension plans and postretirement benefit plans: Pension Benefits December 31, Postretirement Benefits December 31, (US$ in millions) 2017 2016 2015 2017 2016 2015 Service cost $ 33 $ 32 $ 35 $ — $ — $ — Interest cost 36 35 33 8 7 5 Expected return on plan assets (46 ) (44 ) (42 ) — — — Amortization of prior service cost — — 1 — — — Amortization of net loss 10 10 12 — — — Curtailment loss — — 1 — — — Settlement loss recognized — — 1 — — — Special termination benefit 9 1 — — — — Net periodic benefit costs $ 42 $ 34 $ 41 $ 8 $ 7 $ 5 |
Schedule of weighted-average assumptions used in determining the benefit obligations | The weighted-average actuarial assumptions used in determining the benefit obligation under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2017 2016 2017 2016 Discount rate 3.4 % 3.9 % 9.0 % 10.8 % Increase in future compensation levels 3.2 % 3.2 % N/A N/A |
Schedule of weighted-average assumptions used in determining the net periodic benefit costs | The weighted-average actuarial assumptions used in determining the net periodic benefit cost under the defined benefit pension and postretirement benefit plans are as follows: Pension Benefits December 31, Postretirement Benefits December 31, 2017 2016 2015 2017 2016 2015 Discount rate 4.0 % 4.2 % 3.8 % 10.8 % 11.4 % 9.8 % Expected long-term rate of return on assets 6.2 % 6.4 % 6.7 % N/A N/A N/A Increase in future compensation levels 3.2 % 3.3 % 3.5 % N/A N/A N/A |
Estimated future benefit payments | The following benefit payments, which reflect future service as appropriate, are expected to be paid related to defined benefit pension and postretirement benefit plans: (US$ in millions) Pension Benefit Payments Postretirement Benefit Payments 2018 $ 49 $ 7 2019 50 7 2020 52 7 2021 53 7 2022 53 7 2023 and onwards 292 33 |
Pension Benefits | |
EMPLOYEE BENEFIT PLANS | |
Schedule of accumulated benefit obligation in excess of plan assets | The following table summarizes information relating to aggregated defined benefit pension plans with an accumulated benefit obligation in excess of plan assets: Pension Benefits December 31, (US$ in millions) 2017 2016 Projected benefit obligation $ 827 $ 680 Accumulated benefit obligation $ 789 $ 617 Fair value of plan assets $ 651 $ 484 |
Fair values of defined pension plan assets | The fair values of Bunge's defined benefit pension plans' assets at the measurement date, by category, are as follows: December 31, 2017 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 31 $ 31 $ — $ — Equities: Mutual funds (1) 470 423 47 — Fixed income securities: Mutual funds (2) 357 315 42 — Others (3) 38 7 26 5 Total $ 896 $ 776 $ 115 $ 5 December 31, 2016 (US$ in millions) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash $ 8 $ 8 $ — $ — Equities: Mutual funds (1) 406 366 40 — Fixed income securities: Mutual funds (2) 299 199 100 — Others (3) 27 — 23 4 Total $ 740 $ 573 $ 163 $ 4 (1) This category represents a portfolio of equity investments comprised of equity index funds that invest in U.S. equities and non-U.S. equities. The U.S. equities are comprised of investments focusing on large, mid and small cap companies and non-U.S. equities are comprised of international, emerging markets, and real estate investment trusts. (2) This category represents a portfolio of fixed income investments in mutual funds comprised of investment grade U.S. government bonds and notes, foreign government bonds, and corporate bonds from diverse industries. (3) This category represents a portfolio consisting of a mixture of equity, fixed income and cash. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Liabilities related to general claims and lawsuits included in other non-current liabilities | Included in other non-current liabilities at December 31, 2017 and 2016 are the following amounts related to these matters: December 31, (US$ in millions) 2017 2016 Non-income tax claims $ 161 $ 170 Labor claims 92 82 Civil and other claims 103 98 Total $ 356 $ 350 |
Summary of tax examinations against Brazilian subsidiaries | The table below reflects the tax years for which Bunge is subject to income tax examinations by tax authorities: Open Tax Years North America 2010 - 2017 South America 2006 - 2017 Europe 2005 - 2017 Asia-Pacific 2003 - 2017 As of December 31, 2017 , the Brazilian federal and state authorities have concluded examinations of the ICMS and PIS COFINS tax returns and have issued the outstanding claims (including applicable interest and penalties) as of: December 31, (US$ in millions) Years Examined 2017 2016 ICMS 1990 to Present $ 281 $ 241 PIS/COFINS 2004 through 2012 $ 200 $ 154 |
Maximum potential future payments related to guarantees | Bunge has issued or was a party to the following guarantees at December 31, 2017 : (US$ in millions) Maximum Potential Future Payments Unconsolidated affiliates guarantee (1)(2) $ 215 Residual value guarantee (3) 269 Total $ 484 (1) Bunge issued guarantees to certain financial institutions related to debt of certain of its unconsolidated affiliates. The terms of the guarantees are equal to the terms of the related financings which have maturity dates in 2017 through 2034 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2017 , Bunge recorded no obligation related to these guarantees. (2) Bunge issued guarantees to certain third parties related to performance of its unconsolidated affiliates. The terms of the guarantees are equal to the completion date of a port terminal which is expected to be completed in 2020 . There are no recourse provisions or collateral that would enable Bunge to recover any amounts paid under these guarantees. At December 31, 2017 , Bunge recorded no obligation related to these guarantees. (3) Bunge issued guarantees to certain financial institutions which are party to certain operating lease arrangements for railcars and barges. These guarantees provide for a minimum residual value to be received by the lessor at conclusion of the lease term. These leases expire at various dates from 2019 through 2024 . At December 31, 2017 , Bunge's recorded obligation related to these guarantees was $2 million . |
Future minimum payment obligations under freight supply agreements | Future minimum payment obligations due under these agreements as of December 31, 2017 are as follows: (US$ in millions) Ocean Freight Vessels Railroad Services Minimum Payment Obligations 2018 $ 194 $ 36 $ 230 2019 and 2020 121 69 190 2021 and 2022 102 67 169 2023 and thereafter 53 66 119 Total $ 470 $ 238 $ 708 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of after-tax components of accumulated other comprehensive income (loss) attributable to Bunge | The following table summarizes the balances of related after-tax components of accumulated other comprehensive income (loss) attributable to Bunge: (US$ in millions) Foreign Currency Translation Adjustment (1) Deferred Gains (Losses) on Hedging Activities Pension and Other Postretirement Liability Adjustments Unrealized Gains (Losses) on Investments Accumulated Other Comprehensive Income (Loss) Balance January 1, 2015 $ (3,897 ) $ (10 ) (154 ) 3 (4,058 ) Other comprehensive income (loss) before reclassifications (2,546 ) 147 7 — (2,392 ) Amount reclassified from accumulated other comprehensive income — 77 13 — 90 Net-current period other comprehensive income (loss) (2,546 ) 224 20 — (2,302 ) Balance, December 31, 2015 (6,443 ) $ 214 (134 ) 3 (6,360 ) Other comprehensive income (loss) before reclassifications 709 (305 ) (11 ) — 393 Amount reclassified from accumulated other comprehensive income (loss) — (11 ) — — (11 ) Net-current period other comprehensive income (loss) 709 (316 ) (11 ) — 382 Balance, December 31, 2016 (5,734 ) $ (102 ) (145 ) 3 (5,978 ) Other comprehensive income (loss) before reclassifications 187 (105 ) 5 2 89 Amount reclassified from accumulated other comprehensive income (loss) — (37 ) — (4 ) (41 ) Net-current period other comprehensive income (loss) 187 (142 ) 5 (2 ) 48 Balance, December 31, 2017 $ (5,547 ) $ (244 ) $ (140 ) $ 1 $ (5,930 ) (1) Bunge has significant operating subsidiaries in Brazil, Argentina, North America, Europe and Asia-Pacific. The functional currency of Bunge's subsidiaries is the local currency. The assets and liabilities of these subsidiaries are translated into U.S. dollars from local currency at month-end exchange rates, and the resulting foreign currency translation gains (losses) are recorded in the consolidated balance sheets as a component of accumulated other comprehensive income (loss). |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings per common share: Year Ended December 31, (US$ in millions, except for share data) 2017 2016 2015 Income from continuing operations $ 174 $ 776 $ 755 Net (income) loss attributable to noncontrolling interests (14 ) (22 ) 1 Income (loss) from continuing operations attributable to Bunge 160 754 756 Other redeemable obligations (1) — (2 ) (19 ) Convertible preference share dividends (34 ) (34 ) (34 ) Income (loss) from discontinued operations, net of tax — (9 ) 35 Net income (loss) available to Bunge common shareholders - Basic 126 709 738 Add back convertible preference share dividends — 34 34 Net income (loss) available to Bunge common shareholders - Diluted $ 126 $ 743 $ 772 Weighted-average number of common shares outstanding: Basic 140,365,549 139,845,124 143,671,546 Effect of dilutive shares: —stock options and awards (2) 899,528 441,521 749,031 —convertible preference shares (3) — 7,939,830 7,818,390 Diluted 141,265,077 148,226,475 152,238,967 Basic earnings (loss) per common share: Net income (loss) from continuing operations $ 0.90 $ 5.13 $ 4.90 Net income (loss) from discontinued operations — (0.06 ) 0.24 Net income (loss) attributable to Bunge common shareholders—basic $ 0.90 $ 5.07 $ 5.14 Diluted earnings (loss) per common share: Net income (loss) from continuing operations $ 0.89 $ 5.07 $ 4.84 Net income (loss) from discontinued operations — (0.06 ) 0.23 Net income (loss) attributable to Bunge common shareholders—diluted $ 0.89 $ 5.01 $ 5.07 (1) Accretion of redeemable noncontrolling interest of $0 million , $2 million and $19 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, related to a non-fair value variable put arrangement whereby the noncontrolling interest holder may have required Bunge to purchase the remaining shares of an oilseed processing operation in Central and Eastern Europe. As further discussed in Note 22, during the second quarter of 2016 Bunge exercised its call option for their 45% interest in the joint venture for approximately $39 million . The transaction concluded in September 2016. Accretion for the respective periods includes the effect of losses incurred by the operations for the years ended December 31, 2016 and 2015 . (2) The weighted-average common shares outstanding-diluted excludes approximately 4 million , 4 million and 3 million stock options and contingently issuable restricted stock units, which were not dilutive and not included in the computation of earnings per share for the years ended December 31, 2017 , 2016 and 2015 , respectively. (3) Weighted-average common share outstanding-diluted for the year ended December 31, 2017 excludes approximately 8 million weighted-average common shares that are issuable upon conversion of the convertible preference shares that were not dilutive and not included in the weighted-average number of common shares outstanding. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Assumptions used to estimate fair value of stock options | The risk-free interest rate is based on U.S. Treasury zero-coupon bonds with a term equal to the expected option term of the respective grants and grant dates. December 31, Assumptions: 2017 2016 2015 Expected option term (in years) 5.86 5.67 5.87 Expected dividend yield 2.09 % 3.04 % 1.67 % Expected volatility 24.85 % 26.06 % 27.47 % Risk-free interest rate 2.21 % 1.41 % 1.73 % |
Summary of stock option activity | A summary of option activity under the plans for the year ended December 31, 2017 is presented below: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2017 5,949,819 $ 69.35 Granted 1,344,100 $ 80.99 Exercised (862,726 ) $ 67.47 Forfeited or expired (214,623 ) $ 76.11 Outstanding at December 31, 2017 6,216,570 $ 71.88 6.09 $ 26 Exercisable at December 31, 2017 3,716,283 $ 73.62 4.41 $ 10 |
Summary of restricted stock unit activity | A summary of restricted stock unit activity under Bunge's plans for the year ended December 31, 2017 is presented below. Restricted Stock Units Shares Weighted-Average Grant-Date Fair Value Restricted stock units at January 1, 2017 1,544,265 $ 64.85 Granted 694,082 76.79 Vested/issued (2) (343,790 ) 75.22 Forfeited/cancelled (2) (190,553 ) 72.99 Restricted stock units at December 31, 2017 (1) 1,704,004 $ 66.81 (1) Includes accrued unvested dividends, which are payable in Bunge's common shares upon vesting of underlying restricted stock units. (2) During the year ended December 31, 2017 , Bunge issued 267,419 common shares, net of common shares withheld to cover taxes, including related common shares representing accrued dividends, with a weighted-average fair value of $77.12 per share. During the year ended December 31, 2017 , 124,984 performance-based restricted stock units vested. During the year ended December 31, 2017 , Bunge canceled approximately 147,028 shares related to performance-based restricted stock unit awards that did not vest due to non-achievement of performance targets. |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Minimum lease payments under non-cancelable operating leases | Future minimum lease payments by year and in the aggregate under non-cancelable operating leases with initial or remaining terms of one year or more at December 31, 2017 are as follows: (US$ in millions) Minimum 2018 $ 205 2019 197 2020 195 2021 100 2022 70 Thereafter 107 Total $ 874 |
Net rent expense under non-cancelable operating leases | Net rent expense under non-cancelable operating leases is as follows: Year Ended (US$ in millions) 2017 2016 2015 Rent expense $ 251 $ 213 $ 182 Sublease income (9 ) (9 ) (6 ) Net rent expense $ 242 $ 204 $ 176 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segment Information | The segment revenues generated from these transfers are shown in the following table as "Inter-segment revenues." (US$ in millions) Agribusiness Edible Oil Products Milling Products Sugar and Bioenergy Fertilizer Discontinued Operations & Unallocated (1) Total 2017 Net sales to external customers $ 31,741 $ 8,018 $ 1,575 $ 4,054 $ 406 $ — $ 45,794 Inter—segment revenues 4,323 154 5 45 4 (4,531 ) — Foreign currency gains (losses) 85 3 (3 ) 11 (1 ) — 95 Noncontrolling interests (1) (9 ) (8 ) — — (2 ) 5 (14 ) Other income (expense)—net 62 (6 ) (4 ) (3 ) — — 49 Segment EBIT (3) 256 126 63 (12 ) 3 — 436 Discontinued operations (2) — — — — — — — Depreciation, depletion and amortization (267 ) (105 ) (61 ) (164 ) (12 ) — (609 ) Investments in affiliates 411 — — 50 — — 461 Total assets 12,094 2,610 1,460 2,195 330 182 18,871 Capital expenditures 318 136 45 139 9 15 662 2016 Net sales to external customers $ 30,061 $ 6,859 $ 1,647 $ 3,709 $ 403 $ — $ 42,679 Inter—segment revenues 3,867 115 9 13 — (4,004 ) — Foreign currency gains (losses) (7 ) (1 ) (7 ) 9 (2 ) — (8 ) Noncontrolling interests (1) (21 ) (13 ) — — (2 ) 14 (22 ) Other income (expense)—net 24 7 (4 ) (16 ) 1 — 12 Segment EBIT (4) 875 112 131 (4 ) 29 — 1,143 Discontinued operations (2) — — — — — (9 ) (9 ) Depreciation, depletion and amortization (236 ) (94 ) (62 ) (143 ) (12 ) — (547 ) Investments in affiliates 325 — — 48 — — 373 Total assets 12,159 2,329 1,444 2,754 318 184 19,188 Capital expenditures 421 108 75 131 16 33 784 2015 Net sales to external customers $ 31,267 $ 6,698 $ 1,609 $ 3,495 $ 386 $ — $ 43,455 Inter—segment revenues 3,499 178 37 12 — (3,726 ) — Foreign currency gains (losses) 67 — (8 ) (68 ) 1 — (8 ) Noncontrolling interests (1) (9 ) (8 ) — — (1 ) 19 1 Other income (expense)—net (3 ) 4 (3 ) (15 ) (1 ) — (18 ) Segment EBIT (5) 1,108 59 103 (27 ) 5 — 1,248 Discontinued operations (2) — — — — — 35 35 Depreciation, depletion and amortization (234 ) (90 ) (46 ) (160 ) (15 ) — (545 ) Investments in affiliates 249 — — 80 — — 329 Total assets 11,832 1,963 1,343 2,318 299 159 17,914 Capital expenditures 359 63 60 125 17 25 649 (1) Includes the noncontrolling interests' share of interest and tax to reconcile to consolidated noncontrolling interests. (2) Represents net income (loss) from discontinued operations. (3) 2017 EBIT includes a $9 million gain related to the disposition of a subsidiary in our Agribusiness segment in Brazil, which is recorded in other income (expense)-net. In addition, Bunge recorded pre-tax, impairment charges of $52 million , of which $19 million , $16 million and $17 million are in selling, general and administrative expenses, cost of goods sold and other income (expense)—net, respectively. Of these pre-tax impairment charges, $41 million was allocated to Agribusiness, $7 million to Sugar and Bioenergy, $3 million to Edible Oil Products, and $1 million to Milling Products. (4) 2016 EBIT includes $122 million of gains related to disposition of equity interest in operations in Agribusiness, recorded in other income (expense)-net. In addition, Bunge recorded pre-tax impairment charges of $72 million , $9 million and $6 million in other income (expense)-net, cost of goods sold and selling, general and administrative expenses, respectively. Of these pre-tax impairment charges, $46 million was allocated to Sugar and Bioenergy, $29 million to Agribusiness, $9 million to Fertilizer, $2 million Edible Oils and $1 million to Milling Products. (5) 2015 EBIT includes a $47 million gain on the sale of assets in Agribusiness. In addition, Bunge recorded pre-tax impairment charges of $57 million , of which $24 million , $20 million and $13 million are included in cost of goods sold, selling, general and administrative expenses and other income (expense)-net, respectively. Of these pre-tax impairment charges, $25 million was allocated to Agribusiness and $32 million to Edible Oil Products. |
Reconciliation of total segment EBIT to net income attributable to Bunge | A reconciliation of total segment EBIT to net income attributable to Bunge follows: Year Ended December 31, (US$ in millions) 2017 2016 2015 Total segment EBIT from continuing operations $ 436 $ 1,143 $ 1,248 Interest income 38 51 43 Interest expense (263 ) (234 ) (258 ) Income tax (expense) benefit (56 ) (220 ) (296 ) Income (loss) from discontinued operations, net of tax — (9 ) 35 Noncontrolling interests' share of interest and tax 5 14 19 Net income attributable to Bunge $ 160 $ 745 $ 791 |
Net sales by product group to external customers | Net sales by product group to external customers were as follows: Year Ended December 31, (US$ in millions) 2017 2016 2015 Agricultural Commodity Products $ 31,741 $ 30,061 $ 31,267 Edible Oil Products 8,018 6,859 6,698 Wheat Milling Products 988 1,079 1,054 Corn Milling Products 587 568 555 Sugar and Bioenergy Products 4,054 3,709 3,495 Fertilizer Products 406 403 386 Total $ 45,794 $ 42,679 $ 43,455 |
Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets | Geographic area information for net sales to external customers, determined based on the location of the subsidiary making the sale, and long-lived assets follows: Year Ended December 31, (US$ in millions) 2017 2016 2015 Net sales to external customers: Europe $ 16,313 $ 14,238 $ 14,346 United States 10,128 10,239 10,256 Asia-Pacific 8,613 7,843 8,680 Brazil 7,040 6,604 6,117 Argentina 1,433 1,406 1,490 Canada 1,114 1,120 1,245 Rest of world 1,153 1,229 1,321 Total $ 45,794 $ 42,679 $ 43,455 Year Ended December 31, (US$ in millions) 2017 2016 2015 Long-lived assets (1) : Brazil $ 2,406 $ 2,452 $ 2,086 United States 1,267 1,249 1,130 Europe 1,485 1,107 1,074 Asia-Pacific 483 505 558 Canada 440 378 400 Argentina 216 189 204 Rest of world 341 320 377 Total $ 6,638 $ 6,200 $ 5,829 (1) Long-lived assets include property, plant and equipment, net, goodwill and other intangible assets, net, investments in affiliates and non-current assets held for sale. |
QUARTERLY FINANCIAL INFORMATI62
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarter (US$ in millions, except per share data) First Second Third Fourth Year 2017 Net sales $ 11,121 $ 11,645 $ 11,423 $ 11,605 $ 45,794 Gross profit 460 355 490 459 1,764 Income (loss) from discontinued operations, net of tax (6 ) 6 — — — Net income (loss) 48 87 92 (53 ) 174 Net income (loss) attributable to Bunge 47 81 92 (60 ) 160 Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ 0.31 $ 0.48 $ 0.59 $ (0.48 ) $ 0.90 Net income (loss) from discontinued operations (0.04 ) 0.04 — — — Net income (loss) attributable to Bunge common shareholders $ 0.27 $ 0.52 $ 0.59 $ (0.48 ) $ 0.90 Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ 0.31 $ 0.48 $ 0.59 $ (0.48 ) $ 0.89 Net income (loss) from discontinued operations (0.04 ) 0.03 — — — Net income (loss) attributable to Bunge common shareholders $ 0.27 $ 0.51 $ 0.59 $ (0.48 ) $ 0.89 2016 Net sales $ 8,916 $ 10,541 $ 11,423 $ 11,799 $ 42,679 Gross profit 620 530 556 704 2,410 Income (loss) from discontinued operations, net of tax (9 ) (4 ) 5 (1 ) (9 ) Net income (loss) 232 120 130 285 767 Net income (loss) attributable to Bunge 235 121 118 271 745 Earnings (loss) per common share—basic (1) Net income (loss) from continuing operations $ 1.64 $ 0.81 $ 0.80 $ 1.89 $ 5.13 Net income (loss) from discontinued operations (0.07 ) (0.03 ) 0.03 (0.01 ) (0.06 ) Net income (loss) attributable to Bunge common shareholders $ 1.57 $ 0.78 $ 0.83 $ 1.88 $ 5.07 Earnings (loss) per common share—diluted (1) Net income (loss) from continuing operations $ 1.60 $ 0.81 $ 0.79 $ 1.83 $ 5.07 Net income (loss) from discontinued operations (0.06 ) (0.03 ) 0.04 (0.01 ) (0.06 ) Net income (loss) attributable to Bunge common shareholders $ 1.54 $ 0.78 $ 0.83 $ 1.82 $ 5.01 (1) Earnings per share attributable to Bunge common shareholders for both basic and diluted is computed independently for each period presented. As a result, the sum of the quarterly earnings per share for the years ended December 31, 2017 and 2016 may not equal the total computed for the year. |
NATURE OF BUSINESS, BASIS OF 63
NATURE OF BUSINESS, BASIS OF PRESENTATION, AND SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)segmentfacilitybusiness_area | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Description of Business | |||
Number of principal business areas | business_area | 4 | ||
Number of reportable segments | segment | 5 | ||
Number of sugar mills in Brazil | facility | 8 | ||
Principles of Consolidation | |||
Maximum percentage ownership for interests reported as noncontrolling interests in subsidiaries | 100.00% | ||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Deferred fees or costs related to secured advances to suppliers | $ 0 | ||
Imputed interest to be amortized | 0 | ||
Additional interest income accrued | 0 | ||
Research and Development | |||
Research and development expenses | $ 20 | $ 17 | $ 16 |
Minimum | |||
Research and Development | |||
Percentage of receivables sold sale price whose collection is deferred | 10.00% | ||
Maximum | |||
Research and Development | |||
Percentage of receivables sold sale price whose collection is deferred | 15.00% | ||
Biological assets | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 5 years | ||
Biological assets | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 7 years | ||
Buildings | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 10 years | ||
Buildings | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 50 years | ||
Machinery and equipment | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 7 years | ||
Machinery and equipment | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 25 years | ||
Furniture, fixtures and other | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 3 years | ||
Furniture, fixtures and other | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 20 years | ||
Computer software | Minimum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 3 years | ||
Computer software | Maximum | |||
Trade Accounts Receivable and Secured Advances to Suppliers | |||
Useful lives for property, plant and equipment | 10 years |
GLOBAL COMPETITIVENESS PROGRA64
GLOBAL COMPETITIVENESS PROGRAM - RESTRUCTURING COSTS (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)region | |
Global Competitiveness Program | |
Restructuring Cost and Reserve [Line Items] | |
Impact on future earnings | $ 250 |
Number of regions after organizational structure simplification | region | 3 |
Severance and Other Employee Benefit Costs | $ 59 |
Other Program Costs | 18 |
Total Program Costs | 77 |
Global Competitiveness Program | Cost of goods sold | |
Restructuring Cost and Reserve [Line Items] | |
Total Program Costs | 35 |
Global Competitiveness Program | Selling, general and administrative expenses | |
Restructuring Cost and Reserve [Line Items] | |
Total Program Costs | 55 |
Global Competitiveness Program | Agribusiness | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | 39 |
Other Program Costs | 10 |
Total Program Costs | 49 |
Global Competitiveness Program | Edible Oil Products | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | 12 |
Other Program Costs | 4 |
Total Program Costs | 16 |
Global Competitiveness Program | Milling Products | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | 6 |
Other Program Costs | 1 |
Total Program Costs | 7 |
Global Competitiveness Program | Sugar and Bioenergy | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | 1 |
Other Program Costs | 3 |
Total Program Costs | 4 |
Global Competitiveness Program | Fertilizer | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | 1 |
Other Program Costs | 0 |
Total Program Costs | 1 |
Other Industrial Initiatives | |
Restructuring Cost and Reserve [Line Items] | |
Severance and Other Employee Benefit Costs | $ 13 |
GLOBAL COMPETITIVENESS PROGRA65
GLOBAL COMPETITIVENESS PROGRAM - RESTRUCTURING RESERVE (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring Reserve [Roll Forward] | |
Charges incurred on sale or disposal of long-lived assets | $ 45 |
Pension Benefits | |
Restructuring Reserve [Roll Forward] | |
Additional defined benefit expenses relating to the voluntary early retirement program | 10 |
Global Competitiveness Program | Severance and Other Employee Benefit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges incurred | 72 |
Cash payments | (17) |
Pension liability | (10) |
Ending balance | $ 45 |
BUSINESS ACQUISITIONS AND DIS66
BUSINESS ACQUISITIONS AND DISPOSITIONS (Details) € in Millions, $ in Millions | Jan. 30, 2018USD ($)facility | Feb. 28, 2017USD ($) | Aug. 31, 2016USD ($) | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)facilitycountry | Sep. 30, 2018 | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Summary of Investment Holdings [Line Items] | |||||||||
Goodwill | $ 515 | $ 373 | $ 418 | ||||||
Loders | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Number of countries where customers are located (more than 100) | country | 100 | ||||||||
Loders | Forecast | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Interest acquired (as a percent) | 70.00% | 70.00% | 70.00% | ||||||
Purchase price | $ 965 | ||||||||
Purchase price paid in cash | € 297 | $ 595 | |||||||
Grupo Minsa | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Purchase price | $ 311 | ||||||||
Grupo Minsa | Subsequent Event | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Purchase price | $ 75 | ||||||||
Grupo Minsa | Subsequent Event | United States | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Number of mills | facility | 2 | ||||||||
Cargill's two oilseed processing plants | |||||||||
Summary of Investment Holdings [Line Items] | |||||||||
Purchase price | $ 322 | ||||||||
Number of oilseed processing plants and operations | facility | 2 | ||||||||
Property, plant and equipment | 109 | ||||||||
Other net assets and liabilities | 103 | ||||||||
Finite-lived intangible assets | 7 | ||||||||
Goodwill | $ 103 |
BUSINESS ACQUISITIONS AND DIS67
BUSINESS ACQUISITIONS AND DISPOSITIONS - Dispositions (Details) - USD ($) $ in Millions | Nov. 30, 2016 | Mar. 30, 2016 | Feb. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2017 | Jan. 31, 2016 |
Dispositions | ||||||||
Gain on disposition of equity interests/subsidiaries and sale of assets | $ 9 | $ 122 | $ 47 | |||||
Terminal Fronteira Norte Logstica S.A.("TFN") | Held for sale | ||||||||
Dispositions | ||||||||
Ownership interest sold as per agreement (as a percent) | 50.00% | |||||||
Total consideration in cash | $ 145 | |||||||
Gain on disposition of equity interests/subsidiaries and sale of assets | $ 90 | |||||||
Vietnam crush operations | ||||||||
Dispositions | ||||||||
Percentage of ownership after disposed | 45.00% | |||||||
TFN | ||||||||
Dispositions | ||||||||
Ownership interest (as a percent) | 50.00% | |||||||
G3 | ||||||||
Dispositions | ||||||||
Promissory note amount converted | $ 106 | |||||||
Number of shares issued for conversion of promissory note | 148,323,000 | |||||||
Quang Dung | Vietnam crush operations | ||||||||
Dispositions | ||||||||
Ownership interest (as a percent) | 10.00% | |||||||
Wilmar International Limited | Vietnam crush operations | ||||||||
Dispositions | ||||||||
Gain on disposition of equity interests/subsidiaries and sale of assets | $ 30 | |||||||
Percentage of ownership after disposed | 45.00% | |||||||
Cash proceeds from sale of ownership interest | $ 33 | |||||||
SALIC Canada | G3 | ||||||||
Dispositions | ||||||||
Ownership interest acquired (as a percent) | 75.00% | 65.00% | 49.00% | |||||
Bunge Canada | G3 | ||||||||
Dispositions | ||||||||
Ownership interest acquired (as a percent) | 25.00% | 35.00% | 51.00% | |||||
Ownership interest sold (as a percent) | 10.00% | |||||||
Cash proceeds from sale of ownership interest | $ 37 |
TRADE STRUCTURED FINANCE PROG68
TRADE STRUCTURED FINANCE PROGRAM (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
TRADE STRUCTURED FINANCE PROGRAM | |||
Net return from activities including fair value changes | $ 33 | $ 57 | |
Current assets: | |||
Carrying value of time deposits | 0 | 64 | |
Non-current assets: | |||
Carrying value of time deposits | 315 | 464 | |
Current liabilities: | |||
Carrying value of letters of credit obligations | $ 315 | $ 528 | |
Weighted-average interest rate of time deposits (as a percent) | 2.98% | 2.36% | |
Total net proceeds from issuances of LCs | $ 8,174 | $ 7,191 | $ 5,563 |
Trade Accounts Receivable/ Payable, Net | |||
Current liabilities: | |||
Face value of time deposits, LCs, and foreign exchange contracts | 1,196 | 0 | |
Time deposits and LCs presented net on the consolidated balance sheets | |||
Current liabilities: | |||
Face value of time deposits, LCs, and foreign exchange contracts | $ 6,321 | $ 5,732 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
INVENTORIES | ||
Inventories | $ 5,074 | $ 4,773 |
Agribusiness | ||
INVENTORIES | ||
Inventories | 4,022 | 3,741 |
Readily marketable inventories at fair value | 3,865 | 3,593 |
Agribusiness | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 2,694 | 2,523 |
Edible Oil Products | ||
INVENTORIES | ||
Inventories | 458 | 404 |
Readily marketable inventories at fair value | 115 | 123 |
Milling Products | ||
INVENTORIES | ||
Inventories | 196 | 167 |
Sugar and Bioenergy | ||
INVENTORIES | ||
Inventories | 333 | 406 |
Readily marketable inventories at fair value | 76 | 139 |
Sugar and Bioenergy | Merchandising Activities | ||
INVENTORIES | ||
Readily marketable inventories at fair value | 73 | 134 |
Fertilizer | ||
INVENTORIES | ||
Inventories | $ 65 | $ 55 |
OTHER CURRENT ASSETS - COMPONEN
OTHER CURRENT ASSETS - COMPONENTS OF OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Current Assets: | |||
Unrealized gains on derivative contracts, at fair value | $ 910 | $ 1,327 | |
Prepaid commodity purchase contracts | 282 | 273 | |
Secured advances to suppliers, net | 412 | 601 | |
Recoverable taxes, net | 488 | 467 | |
Margin deposits | 258 | 251 | |
Marketable securities, at fair value and other short-term investments | 213 | 94 | |
Deferred purchase price receivable, at fair value (3) | 107 | 87 | |
Income taxes receivable | 192 | 181 | |
Prepaid expenses | 125 | 148 | |
Other | 240 | 216 | |
Total | 3,227 | 3,645 | |
Allowance on secured advance to farmers | 1 | 1 | |
Interest earned on secured advances to suppliers | $ 44 | $ 38 | $ 38 |
OTHER CURRENT ASSETS - MARKETAB
OTHER CURRENT ASSETS - MARKETABLE SECURITIES AND OTHER SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | $ 213 | $ 94 |
Available for sale securities | 3 | 22 |
Trading | 209 | 63 |
Other short-term investments | 1 | 9 |
Foreign government securities | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 145 | 28 |
Corporate debt securities | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 59 | 57 |
Certificate of deposits/time deposits | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | 0 | 7 |
Other | ||
Marketable Securities and Other Short-Term Investments | ||
Total marketable securities and other short-term investments | $ 9 | $ 2 |
PROPERTY, PLANT AND EQUIPMENT72
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 9,912 | $ 9,237 | |
Less: accumulated depreciation and depletion | (4,602) | (4,138) | |
Total | 5,310 | 5,099 | |
Capitalized expenditures | 633 | 810 | $ 592 |
Capitalized interest on construction in progress | 6 | 9 | 7 |
Depreciation and depletion expense | 580 | 517 | $ 518 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 390 | 356 | |
Biological assets | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 709 | 613 | |
Buildings | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 2,116 | 1,934 | |
Machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 5,601 | 5,055 | |
Furniture, fixtures and other | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 579 | 514 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 517 | $ 765 |
GOODWILL (Details)
GOODWILL (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)facility | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill | |||
Goodwill, gross at beginning of period | $ 905,000,000 | $ 950,000,000 | |
Accumulated impairment losses | (532,000,000) | (532,000,000) | |
Goodwill at end of year | 373,000,000 | 418,000,000 | |
Goodwill acquired | 111,000,000 | 13,000,000 | |
Measurement period adjustments | (76,000,000) | $ (13,000,000) | |
Tax benefit on goodwill amortization | (3,000,000) | ||
Foreign currency translation | 31,000,000 | 21,000,000 | |
Goodwill, gross at end of period | 1,047,000,000 | 905,000,000 | 950,000,000 |
Accumulated impairment losses | (532,000,000) | (532,000,000) | (532,000,000) |
Goodwill at end of year | $ 515,000,000 | 373,000,000 | 418,000,000 |
Cargill's two oilseed processing plants | |||
Goodwill | |||
Number of oilseed processing plants and operations | facility | 2 | ||
Subsidiaries | Brazil | |||
Goodwill | |||
Reduced goodwill after utilizing tax benefits attributable to the excess tax | 0 | ||
Agribusiness | |||
Goodwill | |||
Goodwill, gross at beginning of period | $ 128,000,000 | 123,000,000 | |
Accumulated impairment losses | (2,000,000) | (2,000,000) | |
Goodwill at end of year | 126,000,000 | 121,000,000 | |
Goodwill acquired | 103,000,000 | 0 | |
Measurement period adjustments | 0 | ||
Tax benefit on goodwill amortization | (3,000,000) | ||
Foreign currency translation | 22,000,000 | 8,000,000 | |
Goodwill, gross at end of period | 253,000,000 | 128,000,000 | 123,000,000 |
Accumulated impairment losses | (2,000,000) | (2,000,000) | (2,000,000) |
Goodwill at end of year | 251,000,000 | 126,000,000 | 121,000,000 |
Edible Oil Products | |||
Goodwill | |||
Goodwill, gross at beginning of period | 91,000,000 | 78,000,000 | |
Accumulated impairment losses | (13,000,000) | (13,000,000) | |
Goodwill at end of year | 78,000,000 | 65,000,000 | |
Goodwill acquired | 8,000,000 | 13,000,000 | |
Measurement period adjustments | 0 | ||
Tax benefit on goodwill amortization | 0 | ||
Foreign currency translation | 8,000,000 | 0 | |
Goodwill, gross at end of period | 107,000,000 | 91,000,000 | 78,000,000 |
Accumulated impairment losses | (13,000,000) | (13,000,000) | (13,000,000) |
Goodwill at end of year | 94,000,000 | 78,000,000 | 65,000,000 |
Milling Products | |||
Goodwill | |||
Goodwill, gross at beginning of period | 171,000,000 | 234,000,000 | |
Accumulated impairment losses | (3,000,000) | (3,000,000) | |
Goodwill at end of year | 168,000,000 | 231,000,000 | |
Goodwill acquired | 0 | 0 | |
Measurement period adjustments | (76,000,000) | ||
Tax benefit on goodwill amortization | 0 | ||
Foreign currency translation | 1,000,000 | 13,000,000 | |
Goodwill, gross at end of period | 172,000,000 | 171,000,000 | 234,000,000 |
Accumulated impairment losses | (3,000,000) | (3,000,000) | (3,000,000) |
Goodwill at end of year | 169,000,000 | 168,000,000 | 231,000,000 |
Sugar and Bioenergy | |||
Goodwill | |||
Goodwill, gross at beginning of period | 514,000,000 | 514,000,000 | |
Accumulated impairment losses | (514,000,000) | (514,000,000) | |
Goodwill at end of year | 0 | 0 | |
Goodwill acquired | 0 | 0 | |
Measurement period adjustments | 0 | ||
Tax benefit on goodwill amortization | 0 | ||
Foreign currency translation | 0 | 0 | |
Goodwill, gross at end of period | 514,000,000 | 514,000,000 | 514,000,000 |
Accumulated impairment losses | (514,000,000) | (514,000,000) | (514,000,000) |
Goodwill at end of year | 0 | 0 | 0 |
Fertilizer | |||
Goodwill | |||
Goodwill, gross at beginning of period | 1,000,000 | 1,000,000 | |
Accumulated impairment losses | 0 | 0 | |
Goodwill at end of year | 1,000,000 | 1,000,000 | |
Goodwill acquired | 0 | 0 | |
Measurement period adjustments | 0 | ||
Tax benefit on goodwill amortization | 0 | ||
Foreign currency translation | 0 | 0 | |
Goodwill, gross at end of period | 1,000,000 | 1,000,000 | 1,000,000 |
Accumulated impairment losses | 0 | 0 | 0 |
Goodwill at end of year | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
OTHER INTANGIBLE ASSETS (Detail
OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Intangible Assets, Net | |||
Finite-lived intangible assets, gross | $ 573 | $ 558 | |
Less accumulated amortization: | (250) | (222) | |
Intangible assets, net of accumulated amortization | 323 | 336 | |
Aggregate amortization expense | 29 | $ 31 | $ 27 |
Estimated future aggregate amortization expense, year one | 27 | ||
Estimated future aggregate amortization expense, year two | 27 | ||
Estimated future aggregate amortization expense, year three | 27 | ||
Estimated future aggregate amortization expense, year four | 27 | ||
Estimated future aggregate amortization expense, year five | $ 27 | ||
Minimum | |||
Other Intangible Assets, Net | |||
Weighted-average amortization period | 3 years | 10 years | |
Maximum | |||
Other Intangible Assets, Net | |||
Weighted-average amortization period | 27 years | 27 years | |
Edible Oil Products | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | $ 24 | $ 12 | |
Agribusiness | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets acquired | 8 | 9 | |
Trademarks/brands | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets, gross | 173 | 141 | |
Less accumulated amortization: | (72) | (64) | |
Finite-lived intangible assets acquired | 21 | 4 | |
Licenses | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets, gross | 8 | 7 | |
Less accumulated amortization: | (5) | (5) | |
Port rights | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets, gross | 155 | 156 | |
Less accumulated amortization: | (31) | (23) | |
Finite-lived intangible assets acquired | 9 | ||
Other | |||
Other Intangible Assets, Net | |||
Finite-lived intangible assets, gross | 237 | 254 | |
Less accumulated amortization: | (142) | (130) | |
Finite-lived intangible assets acquired | $ 11 | $ 8 |
IMPAIRMENTS - CHARGES (Details)
IMPAIRMENTS - CHARGES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)investment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Impairments | |||
Pre-tax, impairment charges | $ 52 | $ 87 | $ 57 |
Property, plant and equipment impairment | 25 | 9 | 15 |
Impairment of investments | 17 | 14 | |
Intangible asset impairment | 7 | 12 | |
Impairment of other investments | 17 | 59 | 0 |
Pre-tax goodwill impairment charge | 76 | 13 | |
Oil packaging plant in the United States | |||
Impairments | |||
Impairment of several agricultural, industrial assets and other fixed assets | 15 | ||
Freight shipping company in Europe | |||
Impairments | |||
Impairment of investments | 14 | ||
Tomato products company in Brazil | |||
Impairments | |||
Pre-tax goodwill impairment charge | 13 | ||
Patents | |||
Impairments | |||
Intangible asset impairment | 7 | ||
Agriculture patents | |||
Impairments | |||
Intangible asset impairment | 12 | ||
Agribusiness | |||
Impairments | |||
Pre-tax, impairment charges | 41 | 29 | 25 |
Impairment of investments | 15 | ||
Pre-tax goodwill impairment charge | 0 | ||
Agribusiness and Sugar and Bioenergy | |||
Impairments | |||
Impairment of investments | $ 17 | ||
Number of investment impaired | investment | 2 | ||
Sugar and Bioenergy | |||
Impairments | |||
Pre-tax, impairment charges | $ 7 | 46 | |
Impairment of other investments | 44 | ||
Pre-tax goodwill impairment charge | 0 | ||
Fertilizer | |||
Impairments | |||
Pre-tax, impairment charges | 9 | ||
Pre-tax goodwill impairment charge | 0 | ||
Fertilizer | Argentina | |||
Impairments | |||
Property, plant and equipment impairment | 9 | ||
Feedmills, port, and various machinery and equipment | Agribusiness | |||
Impairments | |||
Property, plant and equipment impairment | 25 | ||
Selling, general and administrative expenses | |||
Impairments | |||
Pre-tax, impairment charges | 19 | 6 | 20 |
Cost of goods sold | |||
Impairments | |||
Pre-tax, impairment charges | 16 | 9 | 24 |
Other income (expense) | |||
Impairments | |||
Pre-tax, impairment charges | $ 17 | $ 72 | $ 13 |
IMPAIRMENTS - NONRECURRING FAIR
IMPAIRMENTS - NONRECURRING FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impairment Losses | |||
Property, plant and equipment | $ (25) | $ (9) | $ (15) |
Goodwill | (76) | (13) | |
Investments in affiliates | (17) | (14) | |
Intangibles | (7) | (12) | |
Other current assets | (2) | ||
Other non-current assets | 0 | ||
Investment in affiliates and other investments | (17) | (59) | 0 |
Level 1 | Non-recurring fair value measurements | |||
Carrying Value / Fair Value | |||
Property, plant and equipment | 0 | 0 | 0 |
Goodwill | 0 | ||
Investment in affiliates | 0 | 0 | |
Intangibles | 0 | 0 | |
Other current assets | 0 | ||
Other non-current assets | 0 | ||
Investment in affiliates and other investments | 0 | ||
Level 2 | Non-recurring fair value measurements | |||
Carrying Value / Fair Value | |||
Property, plant and equipment | 16 | 0 | 0 |
Goodwill | 0 | ||
Investment in affiliates | 0 | 0 | |
Intangibles | 0 | 0 | |
Other current assets | 0 | ||
Other non-current assets | 1 | ||
Investment in affiliates and other investments | 0 | ||
Level 3 | Non-recurring fair value measurements | |||
Carrying Value / Fair Value | |||
Property, plant and equipment | 0 | 7 | 12 |
Goodwill | 0 | ||
Investment in affiliates | 0 | 3 | |
Intangibles | 0 | 0 | |
Other current assets | 0 | ||
Other non-current assets | 0 | ||
Investment in affiliates and other investments | 13 | ||
Carrying Value | |||
Carrying Value / Fair Value | |||
Property, plant and equipment | 16 | 7 | 12 |
Goodwill | 0 | ||
Investment in affiliates | 0 | $ 3 | |
Intangibles | 0 | 0 | |
Other current assets | 0 | ||
Other non-current assets | $ 1 | ||
Investment in affiliates and other investments | $ 13 |
INVESTMENTS IN AFFILIATES (Deta
INVESTMENTS IN AFFILIATES (Details) | Dec. 31, 2017 | Nov. 30, 2016 |
Agricola Alvorada S.A. | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 37.00% | |
Vietnam crush operations | Quang Dung | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 10.00% | |
Vietnam crush operations | Agribusiness | Wilmar International Limited | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 45.00% | |
Vietnam crush operations | Agribusiness | Quang Dung | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 10.00% | |
Terminal Fronteira Norte Logstica S.A.("TFN") | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 50.00% | |
Navegacoes Unidas Tapajos S.A. | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 50.00% | |
Terminais do Graneis do Guaruja("TGG") | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 57.00% | |
G3 | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 25.00% | |
Caiasa - Complejo Agroindustrial Angostura S.A | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 33.30% | |
T6 port facility | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 40.00% | |
T6 Industrial crushing facility | Agribusiness | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 50.00% | |
ProMaiz | Sugar and Bioenergy | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 50.00% | |
Southwest Iowa Renewable Energy, LLC | Sugar and Bioenergy | ||
Investments in Affiliates | ||
Ownership interest (as a percent) | 25.00% |
OTHER NON-CURRENT ASSETS - COMP
OTHER NON-CURRENT ASSETS - COMPOSITION (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other Assets, Noncurrent [Abstract] | ||
Recoverable taxes, net | $ 155 | $ 139 |
Judicial deposits | 140 | 129 |
Other long-term receivables | 12 | 23 |
Income taxes receivable | 307 | 261 |
Long-term investments | 66 | 54 |
Affiliate loans receivable | 24 | 25 |
Long-term receivables from farmers in Brazil, net | 131 | 133 |
Other | 193 | 163 |
Total | 1,028 | 927 |
Allowance for recoverable taxes | $ 28 | $ 32 |
Minimum initial maturity of affiliate loans receivable | 1 year |
OTHER NON-CURRENT ASSETS - RECE
OTHER NON-CURRENT ASSETS - RECEIVABLES FROM FARMERS IN BRAZIL (Details) - Long-term receivables - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Long-term investment | |||
Average recorded investment in long-term receivables | $ 253 | $ 235 | |
Recorded Investment | |||
Total | 244 | 242 | |
Allowance | 113 | 109 | $ 100 |
Legal collection process | |||
Recorded Investment | |||
For which an allowance has been provided | 98 | 84 | |
For which no allowance has been provided | 76 | 60 | |
Allowance | 91 | 78 | |
Renegotiated amounts | |||
Recorded Investment | |||
For which an allowance has been provided | 25 | 36 | |
For which no allowance has been provided | 17 | 16 | |
Allowance | 22 | 31 | |
Other long-term receivables | |||
Recorded Investment | |||
Other long-term receivables | $ 28 | $ 46 |
OTHER NON-CURRENT ASSETS - ALLO
OTHER NON-CURRENT ASSETS - ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - Long-term receivables - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Related to Long Term Receivables | ||
Beginning balance | $ 109 | $ 100 |
Bad debt provisions | 19 | 3 |
Recoveries | (12) | (12) |
Write-offs | (1) | (1) |
Foreign currency translation | (2) | 19 |
Ending balance | $ 113 | $ 109 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities Disclosure [Abstract] | ||
Accrued liabilities | $ 606 | $ 548 |
Unrealized losses on derivative contracts at fair value | 897 | 1,203 |
Advances on sales | 406 | 395 |
Other | 277 | 330 |
Total | $ 2,186 | $ 2,476 |
INCOME TAXES - COMPONENTS (Deta
INCOME TAXES - COMPONENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Income From Operations Before Income Tax | |||
United States | $ 21 | $ 102 | $ 207 |
Non-United States | 209 | 894 | 844 |
Total | 230 | 996 | 1,051 |
Current: | |||
United States | 45 | (76) | 35 |
Non-United States | 34 | 170 | 245 |
Total | 79 | 94 | 280 |
Deferred: | |||
United States | 20 | 38 | 36 |
Non-United States | (43) | 88 | (20) |
Total | (23) | 126 | 16 |
Total | $ 56 | $ 220 | $ 296 |
INCOME TAXES - INCOME TAX RATE
INCOME TAXES - INCOME TAX RATE RECONCILIATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Income Tax (Expense) Benefit | |||
Income tax rate | $ 230 | $ 996 | $ 1,051 |
Income tax rate (as percent) | 35.00% | 35.00% | 35.00% |
Income tax expense at the U.S. Federal tax rate | $ 80 | $ 348 | $ 368 |
Adjustments to derive effective tax rate: | |||
Foreign earnings taxed at different statutory rates | (42) | (68) | (16) |
Valuation allowances | 43 | (44) | 44 |
Fiscal incentives | (42) | (34) | (41) |
Foreign exchange on monetary items | (9) | 5 | (5) |
Tax rate changes | (62) | 4 | 1 |
Non-deductible expenses | 27 | 3 | 16 |
Uncertain tax positions | (48) | 89 | (14) |
Deferred balance adjustments | (4) | 0 | (8) |
Equity distributions | 0 | 0 | (64) |
Transition tax | 105 | 0 | 0 |
Tax exempt investments | (14) | (12) | 0 |
Tax credits | (8) | (89) | 0 |
Incremental tax on future distributions | 27 | 0 | 0 |
Other | 3 | 18 | 15 |
Total | $ 56 | $ 220 | $ 296 |
INCOME TAXES - DEFERRED TAX ASS
INCOME TAXES - DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred income tax assets: | ||
Net operating loss carryforwards | $ 964 | $ 944 |
Employee benefits | 106 | 158 |
Tax credit carryforwards | 13 | 10 |
Inventories | 50 | 18 |
Intangibles | 0 | 9 |
Accrued expenses and other | 388 | 231 |
Total deferred tax assets | 1,521 | 1,370 |
Less valuation allowances | (900) | (839) |
Deferred tax assets, net of valuation allowance | 621 | 531 |
Deferred income tax liabilities: | ||
Property, plant and equipment | 251 | 200 |
Undistributed earnings of affiliates | 35 | 13 |
Investments | 17 | 33 |
Intangibles | 24 | 0 |
Total deferred tax liabilities | 327 | 246 |
Net deferred tax assets | 294 | 285 |
Deferred tax liability related to unremitted earnings not considered indefinitely reinvested | 35 | 13 |
Foreign unremitted earnings indefinitely reinvested | 285 | |
Income tax withholdings on undistributed earnings if earnings were to be distributed | 35 | |
Net operating loss carryforwards | 3,507 | |
Indefinite-lived loss carryforwards | $ 2,965 | |
Maximum percentage of annual utilization of carryforward of loss | 30.00% | |
Period of realization loss carryforwards | 5 years | |
Adjustment of deferred tax assets valuation allowance | $ 900 | $ 839 |
Brazil | ||
Deferred income tax liabilities: | ||
Indefinite-lived loss carryforwards | 2,049 | |
Europe and Brazil | ||
Deferred income tax assets: | ||
Less valuation allowances | $ (61) |
INCOME TAXES - UNRECOGNIZED TAX
INCOME TAXES - UNRECOGNIZED TAX BENEFITS (Details) BRL in Millions, ARS in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017BRL | Dec. 31, 2017ARS | Dec. 31, 2014USD ($) | |
Income Tax Examination | ||||||
Unrecognized tax benefits | $ 421 | $ 409 | $ 51 | $ 72 | ||
Interest and penalty charges in income tax expense (benefit) | (9) | 10 | (1) | |||
Accrued interest and penalties | 27 | 36 | ||||
Unrecognized tax benefits, recognized by the end of 2018 | 95 | |||||
Cash income tax payments | 89 | 144 | $ 271 | |||
Brazil | Income tax examination through year 2012 | ||||||
Income Tax Examination | ||||||
Unrecognized tax benefits | 4.6 | BRL 15 | ||||
Total proposed adjustments | 1,200 | BRL 3,971 | ||||
Argentina | Income tax examination 2006 to 2009 | ||||||
Income Tax Examination | ||||||
Total proposed adjustments | 68 | ARS 1,275 | ||||
Accrued interest | 203 | ARS 3,787 | ||||
Other non-current liabilities | ||||||
Income Tax Examination | ||||||
Unrecognized tax benefits | 99 | 81 | ||||
Current liabilities | ||||||
Income Tax Examination | ||||||
Unrecognized tax benefits | $ 7 | $ 49 |
INCOME TAXES - RECONCILIATION O
INCOME TAXES - RECONCILIATION OF UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at the beginning of the period | $ 409 | $ 51 | $ 72 |
Additions based on tax positions related to the current year | 34 | 9 | 6 |
Additions based on acquisitions | 0 | 2 | 10 |
Additions based on tax positions related to prior years | 13 | 374 | 1 |
Reductions for tax positions of prior years | (43) | 0 | (14) |
Settlement or clarification from tax authorities | 0 | (1) | (6) |
Expiration of statute of limitations | (32) | (9) | (5) |
Foreign currency translation | 40 | (17) | (13) |
Balance at the end of the period | $ 421 | $ 409 | $ 51 |
INCOME TAXES - TAX ACT (Details
INCOME TAXES - TAX ACT (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
One-time provisional deferred tax benefit | $ 72 |
Provisional Transition Tax charge | 105 |
Provisional deferred tax liability resulting from the Tax Act | $ 27 |
FINANCIAL INSTRUMENTS AND FAI88
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - ASSETS AND LIABILITIES AT FAIR VALUE (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Unrealized gain | $ 910 | $ 1,327 |
Deferred purchase price receivable (Note 18) | 107 | 87 |
Liabilities: | ||
Unrealized loss | 897 | 1,203 |
Other non-current assets | ||
Unrealized gains (losses) on designated and undesignated derivative contracts | ||
Unrealized gains (losses) on derivative contracts | 0 | 5 |
Other non-current liabilities | ||
Unrealized gains (losses) on designated and undesignated derivative contracts | ||
Unrealized gains (losses) on derivative contracts | 31 | 18 |
Assets and liabilities measured at fair value on a recurring basis | ||
Assets: | ||
Readily marketable inventories (Note 5) | 4,056 | 3,855 |
Trade accounts receivable | 5 | 6 |
Total assets | 5,327 | 5,405 |
Liabilities: | ||
Trade accounts payable | 583 | 522 |
Total liabilities | 1,511 | 1,743 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 1 |
Liabilities: | ||
Unrealized loss | 31 | 18 |
Assets and liabilities measured at fair value on a recurring basis | Hedge accounting | Foreign currency | ||
Assets: | ||
Unrealized gain | 18 | 29 |
Liabilities: | ||
Unrealized loss | 2 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable (Note 18) | 107 | 87 |
Other | 249 | 126 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Interest rate | ||
Assets: | ||
Unrealized gain | 4 | 1 |
Liabilities: | ||
Unrealized loss | 1 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Foreign currency | ||
Assets: | ||
Unrealized gain | 321 | 312 |
Liabilities: | ||
Unrealized loss | 431 | 233 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 523 | 948 |
Liabilities: | ||
Unrealized loss | 432 | 944 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 26 | 16 |
Liabilities: | ||
Unrealized loss | 18 | 15 |
Assets and liabilities measured at fair value on a recurring basis | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 18 | 24 |
Liabilities: | ||
Unrealized loss | 13 | 11 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Readily marketable inventories (Note 5) | 0 | 0 |
Trade accounts receivable | 0 | 0 |
Total assets | 166 | 478 |
Liabilities: | ||
Trade accounts payable | 0 | 0 |
Total liabilities | 166 | 379 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Hedge accounting | Foreign currency | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable (Note 18) | 0 | 0 |
Other | 15 | 18 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Foreign currency | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 1 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 115 | 421 |
Liabilities: | ||
Unrealized loss | 141 | 356 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 18 | 16 |
Liabilities: | ||
Unrealized loss | 15 | 14 |
Assets and liabilities measured at fair value on a recurring basis | Level 1 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 18 | 23 |
Liabilities: | ||
Unrealized loss | 9 | 9 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Readily marketable inventories (Note 5) | 3,691 | 3,618 |
Trade accounts receivable | 5 | 6 |
Total assets | 4,769 | 4,594 |
Liabilities: | ||
Trade accounts payable | 467 | 478 |
Total liabilities | 1,204 | 1,173 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 1 |
Liabilities: | ||
Unrealized loss | 31 | 18 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Hedge accounting | Foreign currency | ||
Assets: | ||
Unrealized gain | 18 | 29 |
Liabilities: | ||
Unrealized loss | 2 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable (Note 18) | 107 | 87 |
Other | 234 | 108 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Interest rate | ||
Assets: | ||
Unrealized gain | 4 | 1 |
Liabilities: | ||
Unrealized loss | 1 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Foreign currency | ||
Assets: | ||
Unrealized gain | 321 | 312 |
Liabilities: | ||
Unrealized loss | 430 | 233 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 389 | 431 |
Liabilities: | ||
Unrealized loss | 271 | 444 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 2 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 0 | 1 |
Liabilities: | ||
Unrealized loss | 2 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Readily marketable inventories (Note 5) | 365 | 237 |
Trade accounts receivable | 0 | |
Total assets | 392 | 333 |
Liabilities: | ||
Trade accounts payable | 116 | 44 |
Total liabilities | 141 | 191 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Hedge accounting | Foreign currency | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | ||
Assets: | ||
Deferred purchase price receivable (Note 18) | 0 | 0 |
Other | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Interest rate | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Foreign currency | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | 0 | 0 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Commodities | ||
Assets: | ||
Unrealized gain | 19 | 96 |
Liabilities: | ||
Unrealized loss | 20 | 144 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Freight | ||
Assets: | ||
Unrealized gain | 8 | 0 |
Liabilities: | ||
Unrealized loss | 3 | 1 |
Assets and liabilities measured at fair value on a recurring basis | Level 3 | Economic hedges | Energy | ||
Assets: | ||
Unrealized gain | 0 | 0 |
Liabilities: | ||
Unrealized loss | $ 2 | $ 2 |
FINANCIAL INSTRUMENTS AND FAI89
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - RECONCILIATION FOR ASSETS AND LIABILITIES MEASURE AT FAIR VALUE USING LEVEL 3 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Total | ||
Balance at beginning of period | $ 142 | $ 368 |
Purchases | 1,093 | 885 |
Sales | (2,041) | (1,400) |
Issuances | (7) | (1) |
Settlements | 508 | 73 |
Transfers into Level 3 | 633 | 678 |
Transfers out of Level 3 | (201) | (559) |
Balance at end of period | 251 | 142 |
Cost of goods sold | ||
Total | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | 124 | 98 |
Derivatives, Net | ||
Derivatives, Net | ||
Balance at beginning of period | (51) | 167 |
Purchases | 11 | 0 |
Sales | 0 | 0 |
Issuances | (7) | (1) |
Settlements | 67 | (133) |
Transfers into Level 3 | (9) | (4) |
Transfers out of Level 3 | 22 | 8 |
Balance at end of period | 2 | (51) |
Total | ||
Change in unrealized gains (losses) relating to Level 3 assets and liabilities | 1 | (1) |
Derivatives, Net | Cost of goods sold | ||
Derivatives, Net | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | (31) | (88) |
Readily Marketable Inventories | ||
Readily Marketable Inventories | ||
Balance at beginning of period | 237 | 245 |
Purchases | 1,551 | 1,107 |
Sales | (2,041) | (1,400) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 701 | 760 |
Transfers out of Level 3 | (225) | (637) |
Balance at end of period | 365 | 237 |
Total | ||
Change in unrealized gains (losses) relating to Level 3 assets and liabilities | 11 | (41) |
Readily Marketable Inventories | Cost of goods sold | ||
Readily Marketable Inventories | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | 142 | 162 |
Trade Accounts Receivable/ Payable, Net | ||
Trade Accounts Receivable/ Payable, Net | ||
Balance at beginning of period | (44) | (44) |
Purchases | (469) | (222) |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 441 | 206 |
Transfers into Level 3 | (59) | (78) |
Transfers out of Level 3 | 2 | 70 |
Balance at end of period | (116) | (44) |
Total | ||
Change in unrealized gains (losses) relating to Level 3 assets and liabilities | 0 | 1 |
Trade Accounts Receivable/ Payable, Net | Cost of goods sold | ||
Trade Accounts Receivable/ Payable, Net | ||
Total gains and losses (realized/unrealized) included in cost of goods sold | $ 13 | $ 24 |
FINANCIAL INSTRUMENTS AND FAI90
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - DERIVATIVE POSITIONS (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)MMBTUdayt | Dec. 31, 2016USD ($)MMBTUdayt | |
Interest rate | Long | Swaps | ||
Derivative | ||
Notional Amount | $ 713 | $ 569 |
Interest rate | Long | Futures | ||
Derivative | ||
Notional Amount | 0 | 5 |
Interest rate | Long | Forward Rate Agreements | ||
Derivative | ||
Notional Amount | 0 | 979 |
Interest rate | Short | Swaps | ||
Derivative | ||
Notional Amount | 1,611 | 500 |
Interest rate | Short | Futures | ||
Derivative | ||
Notional Amount | 2 | 0 |
Interest rate | Short | Forward Rate Agreements | ||
Derivative | ||
Notional Amount | 1,424 | 68 |
Foreign currency | Long | Swaps | ||
Derivative | ||
Notional Amount | 192 | 157 |
Foreign currency | Long | Futures | ||
Derivative | ||
Notional Amount | 0 | 0 |
Foreign currency | Long | Forwards | ||
Derivative | ||
Notional Amount | 9,784 | 6,126 |
Foreign currency | Long | Options | ||
Derivative | ||
Delta | 521 | 268 |
Foreign currency | Short | Swaps | ||
Derivative | ||
Notional Amount | 148 | 129 |
Foreign currency | Short | Futures | ||
Derivative | ||
Notional Amount | 58 | 0 |
Foreign currency | Short | Forwards | ||
Derivative | ||
Notional Amount | 9,668 | 8,889 |
Foreign currency | Short | Options | ||
Derivative | ||
Delta | $ 471 | $ 126 |
Commodities | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 65,045 | 1,442,144 |
Commodities | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 4,520,267 | 0 |
Commodities | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 23,438,004 | 25,960,476 |
Commodities | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 828,296 | 0 |
Commodities | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 5,279,181 | 3,326,874 |
Commodities | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 6,914,908 |
Commodities | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 30,055,331 | 35,672,883 |
Commodities | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 334,494 |
Freight | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 0 | 0 |
Freight | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 892 | 0 |
Freight | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 3,617 | 3,165 |
Freight | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | day | 0 | 467 |
Natural Gas | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 3,519,668 | 1,351,351 |
Natural Gas | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 2,691,350 | 3,930,000 |
Natural Gas | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 0 | 0 |
Natural Gas | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | MMBTU | 0 | 0 |
Energy - other | Long | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 223,600 | 215,100 |
Energy - other | Long | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 1,394 | 1,777 |
Energy - other | Long | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 5,534,290 | 6,048,869 |
Energy - other | Long | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Energy - other | Short | Swaps | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Energy - other | Short | Futures | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Energy - other | Short | Forwards | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 0 |
Energy - other | Short | Options | ||
Derivative | ||
Nonmonetary notional amount of derivatives | t | 0 | 1,285 |
Fair Value Hedges | ||
Derivative | ||
Carrying value of hedged debt | $ 2,071 | $ 1,868 |
Cumulative adjustment to long-term debt from application of hedge accounting | (31) | (17) |
Fair Value Hedges | Interest rate | ||
Derivative | ||
Notional Amount | 2,109 | 1,893 |
Cash Flow Hedges | Foreign currency | ||
Derivative | ||
Amounts expected to be reclassified from AOCI to earnings in the next twelve months | 4 | |
Notional Amount | 237 | 181 |
Net Investment Hedges | ||
Derivative | ||
Carrying value of non-derivative hedging instrument | 725 | 840 |
Net Investment Hedges | Foreign currency | ||
Derivative | ||
Notional Amount | $ 1,000 | $ 0 |
FINANCIAL INSTRUMENTS AND FAI91
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - EFFECT OF DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) | |||
Amounts released from accumulated other comprehensive income (loss) during the period | $ 37 | $ 16 | $ (76) |
Fair Value Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Amounts released from accumulated other comprehensive income (loss) during the period | 0 | 0 | 0 |
Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Amounts released from accumulated other comprehensive income (loss) during the period | 37 | 16 | (76) |
Net Investment Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Amounts released from accumulated other comprehensive income (loss) during the period | 0 | 0 | 0 |
Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in Income on Derivative Instruments | 684 | 181 | 423 |
Interest expense | |||
Derivative Instruments, Gain (Loss) | |||
Gain (Loss) Recognized in Income on Derivative Instruments | 13 | 1 | 0 |
Foreign currency | Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Other comprehensive income (loss) | 14 | 48 | (76) |
Foreign currency | Net Investment Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Other comprehensive income (loss) | (8) | (394) | 223 |
Foreign Exchange Debt | Net Investment Hedges | |||
Derivative Instruments, Gain (Loss) | |||
Other comprehensive income (loss) | (111) | 41 | 0 |
Hedge accounting | Foreign currency | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on hedge accounting | 0 | 0 | 0 |
Hedge accounting | Interest rate | Interest expense | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on hedge accounting | 13 | 5 | 0 |
Economic hedges | Foreign currency | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 1 | 772 | (620) |
Economic hedges | Foreign currency | Foreign currency gains (losses) | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 22 | 267 | (302) |
Economic hedges | Commodities | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 676 | (618) | 1,062 |
Economic hedges | Freight | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 4 | 8 | 6 |
Economic hedges | Energy | Cost of goods sold | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | 3 | 19 | (25) |
Economic hedges | Interest rate | Interest expense | |||
Derivative Instruments, Gain (Loss) | |||
Gain (loss) on economic hedges | $ 0 | $ (4) | $ 0 |
SHORT-TERM DEBT AND CREDIT FA92
SHORT-TERM DEBT AND CREDIT FACILITIES (Details) - USD ($) | Nov. 20, 2014 | Dec. 31, 2017 | Dec. 31, 2016 |
Lines of Credit: | |||
Short-term borrowings weighted-average interest rate (as a percent) | 9.84% | 8.69% | |
Short-term Debt | $ 304,000,000 | $ 257,000,000 | |
Unsecured, variable interest rate | |||
Lines of Credit: | |||
Short-term Debt | $ 304,000,000 | $ 257,000,000 | |
Unsecured, variable interest rate | Minimum | |||
Lines of Credit: | |||
Variable interest rate | 1.27% | 1.27% | |
Unsecured, variable interest rate | Maximum | |||
Lines of Credit: | |||
Variable interest rate | 33.00% | 33.00% | |
Unsecured Local Borrowings in High Interest Rate Jurisdictions | |||
Lines of Credit: | |||
Short-term borrowings weighted-average interest rate (as a percent) | 15.03% | 13.63% | |
Short-term Debt | $ 179,000,000 | $ 148,000,000 | |
2014 Liquidity facility | |||
Lines of Credit: | |||
Maximum borrowing capacity | $ 600,000,000 | ||
Term of credit agreement | 5 years | ||
Long-term Line of Credit | 0 | 0 | |
Commercial paper program | |||
Lines of Credit: | |||
Commercial paper, outstanding issuances | 0 | 0 | |
Bilateral short-term credit line | |||
Lines of Credit: | |||
Short-term Debt | 0 | $ 0 | |
Local Bank Line Of Credit | |||
Lines of Credit: | |||
Short-term Debt | $ 304,000,000 |
LONG-TERM DEBT AND CREDIT FAC93
LONG-TERM DEBT AND CREDIT FACILITIES - OUTSTANDING (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Long-term debt obligations | ||
Subtotal | $ 4,175 | $ 4,007 |
Less: Current portion of long-term debt | (15) | (938) |
Total long-term debt | 4,160 | 3,069 |
Secured debt | 24 | 34 |
Term loan due 2019—three-month Yen LIBOR plus 0.75% (Tranche A) | ||
Long-term debt obligations | ||
Subtotal | $ 253 | $ 243 |
Term loan due 2019—three-month Yen LIBOR plus 0.75% (Tranche A) | Yen LIBOR | ||
Long-term debt obligations | ||
Debt instrument, interest rate added to variable base rate (as a percent) | 0.75% | 0.75% |
Term loan due 2019—fixed Yen interest rate of 0.96% (Tranche B) | ||
Long-term debt obligations | ||
Fixed interest rate | 0.96% | 0.96% |
Subtotal | $ 53 | $ 51 |
Term loan due 2019—three-month LIBOR plus 1.30% (Tranche C) | ||
Long-term debt obligations | ||
Subtotal | $ 85 | $ 85 |
Term loan due 2019—three-month LIBOR plus 1.30% (Tranche C) | LIBOR | ||
Long-term debt obligations | ||
Debt instrument, interest rate added to variable base rate (as a percent) | 1.30% | 1.30% |
5.90% Senior Notes due 2017 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 5.90% | 5.90% |
Subtotal | $ 0 | $ 250 |
3.20% Senior Notes due 2017 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 3.20% | 3.20% |
Subtotal | $ 0 | $ 600 |
8.50% Senior Notes due 2019 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 8.50% | 8.50% |
Subtotal | $ 599 | $ 600 |
3.50% Senior Notes due 2020 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 3.50% | 3.50% |
Subtotal | $ 497 | $ 497 |
3.00% Senior Notes due 2022 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 3.00% | |
Subtotal | $ 396 | $ 0 |
1.85% Senior Notes due 2023—Euro | Euro | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 1.85% | 1.85% |
Subtotal | $ 960 | $ 843 |
3.25% Senior Notes due 2026 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 3.25% | 3.25% |
Subtotal | $ 694 | $ 694 |
3.75% Senior Notes due 2027 | ||
Long-term debt obligations | ||
Interest rate (as a percent) | 3.75% | |
Subtotal | $ 593 | 0 |
Other | ||
Long-term debt obligations | ||
Subtotal | $ 45 | $ 144 |
LONG-TERM DEBT AND CREDIT FAC94
LONG-TERM DEBT AND CREDIT FACILITIES - FAIR VALUE (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Value | ||
Debt Disclosures | ||
Long-term debt, including current portion | $ 4,175 | $ 4,007 |
Fair value | Level 2 | ||
Debt Disclosures | ||
Long-term debt, including current portion | $ 4,337 | $ 4,163 |
LONG-TERM DEBT AND CREDIT FAC95
LONG-TERM DEBT AND CREDIT FACILITIES - ACTIVITY (Details) | Dec. 12, 2017USD ($)term_extension | Sep. 25, 2017USD ($) | Sep. 06, 2017 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 12, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 17, 2014USD ($) |
Debt | ||||||||||
Long-term debt | $ 4,175,000,000 | $ 4,007,000,000 | ||||||||
Debt instrument unused and available borrowing capacity amount | 5,015,000,000 | |||||||||
Subsidiaries | Collateralized debt obligations | ||||||||||
Debt | ||||||||||
Long-term debt | 29,000,000 | |||||||||
Land, property, equipment and investments mortgaged, net carrying value | 54,000,000 | |||||||||
Revolving Credit Facility | ||||||||||
Debt | ||||||||||
Current borrowing capacity | $ 1,750,000,000 | |||||||||
Commitment fee | 35.00% | |||||||||
Additional borrowing capacity | $ 250,000,000 | |||||||||
Number of term extensions | term_extension | 2 | |||||||||
Extension term | 1 year | |||||||||
Long-term Line of Credit | $ 0 | |||||||||
Revolving Credit Facility | Minimum | ||||||||||
Debt | ||||||||||
Utilization fee | 0.10% | |||||||||
Revolving Credit Facility | Minimum | LIBOR | ||||||||||
Debt | ||||||||||
Debt instrument, interest rate added to variable base rate (as a percent) | 0.30% | |||||||||
Revolving Credit Facility | Maximum | ||||||||||
Debt | ||||||||||
Utilization fee | 0.40% | |||||||||
Revolving Credit Facility | Maximum | LIBOR | ||||||||||
Debt | ||||||||||
Debt instrument, interest rate added to variable base rate (as a percent) | 1.30% | |||||||||
Line of Credit | Amended And Restated Credit Agreement | ||||||||||
Debt | ||||||||||
Long-term Line of Credit | $ 0 | |||||||||
Aggregate principal amount | $ 865,000,000 | |||||||||
Line of Credit | Amended And Restated Credit Agreement | Minimum | ||||||||||
Debt | ||||||||||
Commitment fee (as a percent) | 0.125% | |||||||||
Line of Credit | Amended And Restated Credit Agreement | Minimum | LIBOR | ||||||||||
Debt | ||||||||||
Debt instrument, interest rate added to variable base rate (as a percent) | 1.00% | |||||||||
Line of Credit | Amended And Restated Credit Agreement | Maximum | ||||||||||
Debt | ||||||||||
Commitment fee (as a percent) | 0.275% | |||||||||
Line of Credit | Amended And Restated Credit Agreement | Maximum | LIBOR | ||||||||||
Debt | ||||||||||
Debt instrument, interest rate added to variable base rate (as a percent) | 1.75% | |||||||||
Loders | Forecast | ||||||||||
Debt | ||||||||||
Interest acquired (as a percent) | 70.00% | 70.00% | ||||||||
Unsecured Debt | Unsecured $900 Million Term Loan | ||||||||||
Debt | ||||||||||
Aggregate principal amount | $ 900,000,000 | |||||||||
Long-term debt | $ 0 | |||||||||
Senior Notes | Unsecured Senior Notes 3.00 Percent Due 2022 | ||||||||||
Debt | ||||||||||
Aggregate principal amount | $ 400,000,000 | |||||||||
Interest rate (as a percent) | 3.00% | |||||||||
Senior Notes | Unsecured Senior Notes 3.75 Percent Due 2027 | ||||||||||
Debt | ||||||||||
Aggregate principal amount | $ 600,000,000 | |||||||||
Interest rate (as a percent) | 3.75% | |||||||||
Senior Notes | Unsecured Senior Notes 3.00 Percent Due 2022 and 3.75 Percent Due 2027 | ||||||||||
Debt | ||||||||||
Net proceeds from issuance of debt | $ 989,000,000 |
LONG-TERM DEBT AND CREDIT FAC96
LONG-TERM DEBT AND CREDIT FACILITIES - PRINCIPAL MATURITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Principal Maturities of Long-Term Debt | |||
2,018 | $ 18 | ||
2,019 | 1,009 | ||
2,020 | 517 | ||
2,021 | 16 | ||
2,022 | 406 | ||
Thereafter | 2,259 | ||
Total | 4,225 | ||
Changes in long-term debt attributable to fair value hedge | 31 | ||
Deferred financing fees | 19 | ||
Interest paid, net of capitalization | $ 236 | $ 234 | $ 227 |
TRADE RECEIVABLES SECURITIZAT97
TRADE RECEIVABLES SECURITIZATION PROGRAM (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Minimum | |||
Accounts Receivable Securitization Facilities Disclosures | |||
Percentage of receivables sold sale price whose collection is deferred | 10.00% | ||
Maximum | |||
Accounts Receivable Securitization Facilities Disclosures | |||
Percentage of receivables sold sale price whose collection is deferred | 15.00% | ||
Bunge Securitization B.V. | |||
Accounts Receivable Securitization Facilities Disclosures | |||
Maximum funding under trade receivables securitization program | $ 700 | ||
Receivables sold which were derecognized on Bunge balance sheet | 810 | $ 628 | |
Deferred purchase price included in other current assets | 107 | 87 | |
Gross receivables sold | 10,022 | 9,405 | $ 10,601 |
Proceeds received in cash related to transfer of receivables | 9,734 | 9,197 | 10,396 |
Cash collections from customers on receivables previously sold | 9,659 | 9,176 | 10,542 |
Discounts related to gross receivables sold included in SG&A | $ 9 | $ 6 | $ 5 |
Payment term for receivables | 30 days | ||
Bunge Securitization B.V. | Minimum | |||
Accounts Receivable Securitization Facilities Disclosures | |||
Percentage of receivables sold sale price whose collection is deferred | 10.00% | ||
Bunge Securitization B.V. | Maximum | |||
Accounts Receivable Securitization Facilities Disclosures | |||
Percentage of receivables sold sale price whose collection is deferred | 15.00% |
EMPLOYEE BENEFIT PLANS - CHANGE
EMPLOYEE BENEFIT PLANS - CHANGES IN OBLIGATIONS, ASSETS AND FUNDED STATUS (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | ||||
Employee Benefit Plans | ||||
Pension curtailment gain recognized and recorded in other comprehensive income | $ 31 | |||
Remeasurement loss recognized and recorded in other comprehensive income | 18 | |||
Additional defined benefit expenses relating to the voluntary early retirement program | $ 10 | |||
Change in benefit obligations: | ||||
Benefit obligation at the beginning of year | 941 | 941 | $ 864 | |
Service cost | 33 | 32 | $ 35 | |
Interest cost | 36 | 35 | 33 | |
Plan curtailments | (31) | (3) | ||
Special termination benefits | 9 | 0 | ||
Actuarial (gain) loss, net | 100 | 31 | ||
Employee contributions | 6 | 6 | ||
Net transfers in (out) | 3 | 8 | ||
Plan settlements | 0 | (5) | ||
Benefits paid | (35) | (21) | ||
Expenses paid | (4) | (2) | ||
Impact of foreign exchange rates | 15 | (4) | ||
Benefit obligation at the end of year | 1,073 | 941 | 864 | |
Change in plan assets: | ||||
Fair value of plan assets at the beginning of year | 740 | 740 | 689 | |
Actual return on plan assets | 102 | 53 | ||
Employer contributions | 77 | 20 | ||
Employee contributions | 6 | 6 | ||
Plan settlements | 0 | (4) | ||
Effect of plan combinations | 0 | 1 | ||
Benefits paid | (35) | (21) | ||
Expenses paid | (4) | (3) | ||
Impact of foreign exchange rates | 10 | (1) | ||
Fair value of plan assets at the end of year | 896 | 740 | 689 | |
Funded (unfunded) status and net amounts recognized: | ||||
Plan assets (less than) in excess of benefit obligation | (177) | (201) | ||
Net (liability) asset recognized in the balance sheet | (177) | (201) | ||
Amounts recognized in the balance sheet consist of: | ||||
Non-current assets | 18 | 16 | ||
Current liabilities | (6) | (5) | ||
Non-current liabilities | (189) | (212) | ||
Net liability recognized | (177) | (201) | ||
Postretirement Benefits | ||||
Change in benefit obligations: | ||||
Benefit obligation at the beginning of year | 74 | 74 | 56 | |
Service cost | 0 | 0 | 0 | |
Interest cost | 8 | 7 | 5 | |
Plan curtailments | 0 | 0 | ||
Special termination benefits | 0 | |||
Actuarial (gain) loss, net | (11) | 8 | ||
Employee contributions | 1 | 1 | ||
Net transfers in (out) | 0 | 0 | ||
Plan settlements | 0 | 0 | ||
Benefits paid | (4) | (7) | ||
Expenses paid | 0 | 0 | ||
Impact of foreign exchange rates | (1) | 9 | ||
Benefit obligation at the end of year | 67 | 74 | 56 | |
Change in plan assets: | ||||
Fair value of plan assets at the beginning of year | $ 0 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 3 | 6 | ||
Employee contributions | 1 | 1 | ||
Plan settlements | 0 | 0 | ||
Effect of plan combinations | 0 | 0 | ||
Benefits paid | (4) | (7) | ||
Expenses paid | 0 | 0 | ||
Impact of foreign exchange rates | 0 | 0 | ||
Fair value of plan assets at the end of year | 0 | 0 | $ 0 | |
Funded (unfunded) status and net amounts recognized: | ||||
Plan assets (less than) in excess of benefit obligation | (67) | (74) | ||
Net (liability) asset recognized in the balance sheet | (67) | (74) | ||
Amounts recognized in the balance sheet consist of: | ||||
Non-current assets | 0 | |||
Current liabilities | (7) | (8) | ||
Non-current liabilities | (60) | (66) | ||
Net liability recognized | $ (67) | $ (74) |
EMPLOYEE BENEFIT PLANS - AMOUNT
EMPLOYEE BENEFIT PLANS - AMOUNTS IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Pension Benefits | |
EMPLOYEE BENEFIT PLANS | |
Unrecognized prior service credit | $ 6 |
Unrecognized prior service credit, net of tax | 4 |
Unrecognized actuarial loss | 194 |
Unrecognized actuarial gain (loss), net of tax | 126 |
Prior service cost and unrecognized actuarial losses included in accumulated other comprehensive income that is expected to be recognized in net periodic benefit costs in 2016 | 9 |
Prior service cost and unrecognized actuarial losses included in accumulated other comprehensive income that is expected to be recognized in net periodic benefit costs in 2016, net of tax | 6 |
Postretirement Benefits | |
EMPLOYEE BENEFIT PLANS | |
Unrecognized prior service credit | 1 |
Unrecognized prior service credit, net of tax | 1 |
Unrecognized actuarial loss | 3 |
Unrecognized actuarial gain (loss), net of tax | $ 2 |
EMPLOYEE BENEFIT PLANS - PROJEC
EMPLOYEE BENEFIT PLANS - PROJECTED AND ACCUMULATED BENEFIT OBLIGATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Defined Benefit Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets | |||
Projected benefit obligations | $ 1,073 | $ 941 | $ 864 |
Plans with projected benefit obligations | 937 | 806 | |
Excess of fair value of related plan assets | 742 | 589 | |
Accumulated benefit obligation | 1,011 | 850 | |
Information Relating to Aggregated Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | |||
Projected benefit obligation | 827 | 680 | |
Accumulated benefit obligation | 789 | 617 | |
Fair value of plan assets | 651 | 484 | |
Postretirement Benefits | |||
Defined Benefit Pension Plans with Projected Benefit Obligations in Excess of Fair Value of Plan Assets | |||
Projected benefit obligations | $ 67 | $ 74 | $ 56 |
Information Relating to Aggregated Defined Benefit Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | |||
Annual rate of increase in the per capita cost of covered health care benefits assumed (as a percent) | 8.40% | 8.80% | |
Decreased annual rate of increase in the per capita cost of covered healthcare by 2038 and thereafter (as a percent) | 8.10% | 8.00% | |
One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | |||
Effect of a One-percentage point increase to total service and interest cost | $ 1 | ||
Effect of a One-percentage point decrease to total service and interest cost | (1) | ||
Effect of a One-percentage point increase to postretirement benefit obligation | 5 | ||
Effect of a One-percentage point decrease to postretirement benefit obligation | $ (4) |
EMPLOYEE BENEFIT PLANS - PERIOD
EMPLOYEE BENEFIT PLANS - PERIODIC BENEFIT COSTS AND ASSUMPTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Net Periodic Benefit Costs: | |||
Service cost | $ 33 | $ 32 | $ 35 |
Interest cost | 36 | 35 | 33 |
Expected return on plan assets | (46) | (44) | (42) |
Amortization of prior service cost | 0 | 0 | 1 |
Amortization of net loss | 10 | 10 | 12 |
Curtailment loss | 0 | 0 | 1 |
Settlement loss recognized | 0 | 0 | 1 |
Severance and Other Employee Benefit Costs | 9 | 1 | 0 |
Net periodic benefit costs | $ 42 | $ 34 | $ 41 |
Weighted-Average Assumptions to Determine Benefit Obligations | |||
Discount rate (as a percent) | 3.40% | 3.90% | |
Increase in future compensation levels (as a percent) | 3.20% | 3.20% | |
Weighted-Average Assumptions to Determine the Net Periodic Benefit Cost | |||
Discount rate (as a percent) | 4.00% | 4.20% | 3.80% |
Expected long-term rate of return on assets (as a percent) | 6.20% | 6.40% | 6.70% |
Increase in future compensation levels (as a percent) | 3.20% | 3.30% | 3.50% |
Postretirement Benefits | |||
Net Periodic Benefit Costs: | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 8 | 7 | 5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 0 | 0 | 0 |
Curtailment loss | 0 | 0 | 0 |
Settlement loss recognized | 0 | 0 | 0 |
Severance and Other Employee Benefit Costs | 0 | 0 | 0 |
Net periodic benefit costs | $ 8 | $ 7 | $ 5 |
Weighted-Average Assumptions to Determine Benefit Obligations | |||
Discount rate (as a percent) | 9.00% | 10.80% | |
Weighted-Average Assumptions to Determine the Net Periodic Benefit Cost | |||
Discount rate (as a percent) | 10.80% | 11.40% | 9.80% |
EMPLOYEE BENEFIT PLANS - PLAN A
EMPLOYEE BENEFIT PLANS - PLAN ASSETS AND FUTURE PAYMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Estimated Future Benefit Payments | |||
Employee defined contribution plans | $ 11 | $ 11 | $ 11 |
Pension Benefits | |||
Target Asset Allocation | |||
Fair value of plan assets | 896 | 740 | 689 |
Estimated contribution by employer, next fiscal year | 15 | ||
Estimated Future Benefit Payments | |||
2,018 | 49 | ||
2,019 | 50 | ||
2,020 | 52 | ||
2,021 | 53 | ||
2,022 | 53 | ||
2023 and onwards | $ 292 | ||
Pension Benefits | Equities Mutual Funds | |||
Target Asset Allocation | |||
Target asset allocation (as a percent) | 60.00% | ||
Pension Benefits | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Target asset allocation (as a percent) | 40.00% | ||
Pension Benefits | Level 1 | |||
Target Asset Allocation | |||
Fair value of plan assets | $ 776 | 573 | |
Pension Benefits | Level 1 | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 31 | 8 | |
Pension Benefits | Level 1 | Equities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 423 | 366 | |
Pension Benefits | Level 1 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 315 | 199 | |
Pension Benefits | Level 1 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 7 | 0 | |
Pension Benefits | Level 2 | |||
Target Asset Allocation | |||
Fair value of plan assets | 115 | 163 | |
Pension Benefits | Level 2 | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Equities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 47 | 40 | |
Pension Benefits | Level 2 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 42 | 100 | |
Pension Benefits | Level 2 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 26 | 23 | |
Pension Benefits | Level 3 | |||
Target Asset Allocation | |||
Fair value of plan assets | 5 | 4 | |
Pension Benefits | Level 3 | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Equities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | 0 | |
Pension Benefits | Level 3 | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 5 | 4 | |
Pension Benefits | Fair value | |||
Target Asset Allocation | |||
Fair value of plan assets | 896 | 740 | |
Pension Benefits | Fair value | Cash | |||
Target Asset Allocation | |||
Fair value of plan assets | 31 | 8 | |
Pension Benefits | Fair value | Equities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 470 | 406 | |
Pension Benefits | Fair value | Fixed income securities Mutual Funds | |||
Target Asset Allocation | |||
Fair value of plan assets | 357 | 299 | |
Pension Benefits | Fair value | Others | |||
Target Asset Allocation | |||
Fair value of plan assets | 38 | 27 | |
Postretirement Benefits | |||
Target Asset Allocation | |||
Fair value of plan assets | 0 | $ 0 | $ 0 |
Estimated contribution by employer, next fiscal year | 7 | ||
Estimated Future Benefit Payments | |||
2,018 | 7 | ||
2,019 | 7 | ||
2,020 | 7 | ||
2,021 | 7 | ||
2,022 | 7 | ||
2023 and onwards | $ 33 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Navegacoes Unidas Tapajos S.A. | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 50.00% | ||
Notes receivable | $ 22 | ||
Navegacoes Unidas Tapajos S.A. | CDI | |||
Related Party Transactions | |||
Interest rate (as a percent) | 80.00% | ||
Solazyme Bunge Renewable Oils | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 49.90% | ||
Notes receivable | $ 9 | ||
Solazyme Bunge Renewable Oils | CDI | |||
Related Party Transactions | |||
Interest rate (as a percent) | 100.00% | ||
Bunge-SCF Grain, LLC | |||
Related Party Transactions | |||
Ownership interest (as a percent) | 50.00% | ||
Notes payable | $ 9 | ||
Other related party | |||
Related Party Transactions | |||
Notes receivable | 2 | ||
Unconsolidated joint ventures | |||
Related Party Transactions | |||
Purchases of soybeans, other commodity products and received port services from certain unconsolidated ventures | 920 | $ 1,054 | $ 757 |
Sale of soybeans, other commodity products and provided port services to certain unconsolidated ventures | 508 | 326 | 351 |
Trade accounts receivable | 16 | 33 | |
Trade accounts payable | 36 | 46 | |
Unconsolidated joint ventures | Tolling services and administrative support | |||
Related Party Transactions | |||
Transaction amounts | $ 166 | $ 103 | $ 106 |
COMMITMENTS AND CONTINGENCIE104
COMMITMENTS AND CONTINGENCIES (Details) BRL in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($)subsidiary | Dec. 31, 2016USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2017BRL | Mar. 31, 2016employee | |
Loss Contingencies and Guarantees | |||||
Loss contingency accrual, at carrying value | $ 356 | $ 350 | |||
Accrued interest and penalties | 27 | 36 | |||
Maximum potential future payments related to guarantees | 484 | ||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
2,018 | 230 | ||||
2019 and 2020 | 190 | ||||
2021 and 2022 | 169 | ||||
2023 and thereafter | 119 | ||||
Total | 708 | ||||
Freight supply agreements | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
Proceeds from relet agreements related to ocean freight vessels | 117 | ||||
Relet proceeds expected to be received in 2017 | $ 15 | ||||
Freight supply agreements | Minimum | |||||
Loss Contingencies and Guarantees | |||||
Freight supply agreements term, ocean freight vessels | 2 months | ||||
Freight supply agreements term, railroad services | 5 years | ||||
Freight supply agreements | Maximum | |||||
Loss Contingencies and Guarantees | |||||
Freight supply agreements term, ocean freight vessels | 7 years | ||||
Freight supply agreements term, railroad services | 9 years | ||||
Ocean Freight Vessels | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
2,018 | $ 194 | ||||
2019 and 2020 | 121 | ||||
2021 and 2022 | 102 | ||||
2023 and thereafter | 53 | ||||
Total | 470 | ||||
Railroad Services | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
2,018 | 36 | ||||
2019 and 2020 | 69 | ||||
2021 and 2022 | 67 | ||||
2023 and thereafter | 66 | ||||
Total | 238 | ||||
Inventories | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
Purchase commitments | 20 | ||||
Power supply contracts | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
Purchase commitments | 95 | ||||
Construction in progress | |||||
Future Minimum Payment Obligations Due Under Freight Supply Agreements | |||||
Purchase commitments | 38 | ||||
Brazil | |||||
Loss Contingencies and Guarantees | |||||
Number of employees under administrative proceedings | employee | 2 | ||||
Argentina | |||||
Loss Contingencies and Guarantees | |||||
Payment of accrued export tax obligations | $ 112 | ||||
Interest assessed on paid export tax obligations | 263 | ||||
Non-income tax claims | |||||
Loss Contingencies and Guarantees | |||||
Loss contingency accrual, at carrying value | 161 | 170 | |||
Labor claims | |||||
Loss Contingencies and Guarantees | |||||
Loss contingency accrual, at carrying value | 92 | 82 | |||
Civil and other claims | |||||
Loss Contingencies and Guarantees | |||||
Loss contingency accrual, at carrying value | 103 | 98 | |||
Value added tax claims (ICMS, IPI, PIS and COFINS) | Brazil | |||||
Loss Contingencies and Guarantees | |||||
Income tax liability for ICMS incentives or benefits | 0 | ||||
Unconstitutional ICMS tax credits | |||||
Loss Contingencies and Guarantees | |||||
Portion of outstanding liabilities | 122 | BRL 403 | |||
Unconsolidated affiliates guarantee | |||||
Loss Contingencies and Guarantees | |||||
Maximum potential future payments related to guarantees | 215 | ||||
Obligation related to outstanding guarantees | 0 | ||||
Residual value guarantee | |||||
Loss Contingencies and Guarantees | |||||
Maximum potential future payments related to guarantees | 269 | ||||
Obligation related to outstanding guarantees | 2 | ||||
Guarantee of indebtedness of subsidiaries | |||||
Loss Contingencies and Guarantees | |||||
Long-term debt including current portion, carrying value | $ 4,249 | ||||
Guarantee of indebtedness of subsidiaries | Bunge Limited Finance Corp., Bunge Finance Europe B.V. and Bunge N.A. Finance L.P. | 100% owned subsidiaries | |||||
Loss Contingencies and Guarantees | |||||
Number of finance subsidiaries issuing senior notes | subsidiary | 3 | ||||
Percentage of ownership interest | 100.00% | 100.00% | |||
Tax return examination 1990 to Present | ICMS tax liability | Brazil | |||||
Loss Contingencies and Guarantees | |||||
Total assessment | $ 281 | 241 | |||
Tax return examination 2004 to 2012 | PIS COFINS liability | Brazil | |||||
Loss Contingencies and Guarantees | |||||
Total assessment | $ 200 | $ 154 |
REDEEMABLE NONCONTROLLING IN105
REDEEMABLE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Jul. 31, 2012 | |
Redeemable Noncontrolling Interest [Line Items] | ||||||
Joint venture transaction costs | $ 0 | $ 39 | $ 0 | |||
Oilseed processing venture in Eastern Europe | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Interest acquired (as a percent) | 45.00% | 55.00% | ||||
Joint venture transaction costs | $ 39 | |||||
Prio | Oilseed processing venture in Eastern Europe | ||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||
Ownership interest (as a percent) | 45.00% |
EQUITY - SHARE REPURCHASE PROGR
EQUITY - SHARE REPURCHASE PROGRAM (Details) - USD ($) | 12 Months Ended | 32 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | May 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase of common shares for the period | $ 0 | $ 200,000,000 | $ 300,000,000 | ||
Common Shares | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount of issued and outstanding common shares available for repurchase | $ 500,000,000 | ||||
Repurchase of common shares (in shares) | 3,296,230 | 4,707,440 | |||
Repurchase of common shares for the period | $ 200,000,000 | $ 300,000,000 |
EQUITY - CUMULATIVE CONVERTIBLE
EQUITY - CUMULATIVE CONVERTIBLE PERPETUAL PREFERENCE SHARES (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)day$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | |
Class of Stock [Line Items] | |||
Convertible perpetual preference shares, outstanding | shares | 6,899,700 | 6,900,000 | |
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Convertible perpetual preference shares, liquidation preference (in dollars per share) | $ 100 | $ 100 | |
Dividends on preference shares | $ | $ 34 | $ 34 | $ 34 |
Convertible perpetual preference shares | |||
Class of Stock [Line Items] | |||
Convertible perpetual preference shares, outstanding | shares | 6,899,700 | ||
Convertible preference shares accrued dividends (as a percent) | 4.875% | ||
Convertible perpetual preference shares, par value (in dollars per share) | $ 0.01 | ||
Convertible perpetual preference shares, liquidation preference (in dollars per share) | 100 | ||
Liquidation preference (in dollars per share) | $ 25 | ||
Convertible preference share, common shares issued upon conversion, at any time before mandatory conversion date | 1.1693 | ||
Conversion price, convertible preference share (in dollars per share) | $ 85.5238 | ||
Convertible preference shares, aggregate common shares issued if converted at current conversion rate | shares | 8,067,819.21 | ||
Target ratio of closing share price to conversion price as a condition for conversion or redemption of Convertible Notes (as a percent) | 130.00% | ||
Number of tradings that share price is over a specified threshold to trigger conversion of the notes | day | 20 | ||
The consecutive trading days which must occur to trigger the conversion of the notes | day | 30 |
EQUITY EQUITY - PENSION LIABILT
EQUITY EQUITY - PENSION LIABILTY ADJUSTMENT (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Equity [Abstract] | |
Pension curtailment gain | $ 31 |
Remeasurement loss | $ (18) |
EQUITY - AOCI (Details)
EQUITY - AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance | $ 7,343 | $ 6,652 | $ 8,690 |
Total other comprehensive income (loss) | 64 | 386 | (2,306) |
Balance | 7,357 | 7,343 | 6,652 |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance | (5,734) | (6,443) | (3,897) |
Other comprehensive income (loss) before reclassifications | 187 | 709 | (2,546) |
Amount reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Total other comprehensive income (loss) | 187 | 709 | (2,546) |
Balance | (5,547) | (5,734) | (6,443) |
Deferred Gains (Losses) on Hedging Activities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance | (102) | 214 | (10) |
Other comprehensive income (loss) before reclassifications | (105) | (305) | 147 |
Amount reclassified from accumulated other comprehensive income | (37) | (11) | 77 |
Total other comprehensive income (loss) | (142) | (316) | 224 |
Balance | (244) | (102) | 214 |
Pension and Other Postretirement Liability Adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance | (145) | (134) | (154) |
Other comprehensive income (loss) before reclassifications | 5 | (11) | 7 |
Amount reclassified from accumulated other comprehensive income | 0 | 0 | 13 |
Total other comprehensive income (loss) | 5 | (11) | 20 |
Balance | (140) | (145) | (134) |
Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance | 3 | 3 | 3 |
Other comprehensive income (loss) before reclassifications | 2 | 0 | 0 |
Amount reclassified from accumulated other comprehensive income | (4) | 0 | 0 |
Total other comprehensive income (loss) | (2) | 0 | 0 |
Balance | 1 | 3 | 3 |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Balance | (5,978) | (6,360) | (4,058) |
Other comprehensive income (loss) before reclassifications | 89 | 393 | (2,392) |
Amount reclassified from accumulated other comprehensive income | (41) | (11) | 90 |
Total other comprehensive income (loss) | 48 | 382 | (2,302) |
Balance | $ (5,930) | $ (5,978) | $ (6,360) |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Computation of basic and diluted earnings per common share | |||||||||||
Income from continuing operations | $ 174 | $ 776 | $ 755 | ||||||||
Net (income) loss attributable to noncontrolling interests | (14) | (22) | 1 | ||||||||
Income (loss) from continuing operations attributable to Bunge | 160 | 754 | 756 | ||||||||
Other redeemable obligations | 0 | (2) | (19) | ||||||||
Convertible preference share dividends | (34) | (34) | (34) | ||||||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | $ 6 | $ (6) | $ (1) | $ 5 | $ (4) | $ (9) | 0 | (9) | 35 |
Net income (loss) available to Bunge common shareholders | 126 | 709 | 738 | ||||||||
Add back convertible preference share dividends | 0 | 34 | 34 | ||||||||
Net income (loss) available to Bunge common shareholders - Diluted | $ 126 | $ 743 | $ 772 | ||||||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic (in shares) | 140,365,549 | 139,845,124 | 143,671,546 | ||||||||
Effect of dilutive shares: | |||||||||||
-stock options and awards (in shares) | 899,528 | 441,521 | 749,031 | ||||||||
-convertible preference shares (in shares) | 0 | 7,939,830 | 7,818,390 | ||||||||
Diluted (in shares) | 141,265,077 | 148,226,475 | 152,238,967 | ||||||||
Basic earnings (loss) per common share: | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | $ 0.59 | $ 0.48 | $ 0.31 | $ 1.89 | $ 0.80 | $ 0.81 | $ 1.64 | $ 0.90 | $ 5.13 | $ 4.90 | |
Net income (loss) from discontinued operations (in dollars per share) | $ 0 | 0 | 0.04 | (0.04) | (0.01) | 0.03 | (0.03) | (0.07) | 0 | (0.06) | 0.24 |
Net income (loss) to Bunge common shareholders (in dollars per share) | (0.48) | 0.59 | 0.52 | 0.27 | 1.88 | 0.83 | 0.78 | 1.57 | 0.90 | 5.07 | 5.14 |
Diluted earnings (loss) per common share: | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | 0.59 | 0.48 | 0.31 | 1.83 | 0.79 | 0.81 | 1.60 | 0.89 | 5.07 | 4.84 | |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0 | 0.03 | (0.04) | (0.01) | 0.04 | (0.03) | (0.06) | 0 | (0.06) | 0.23 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ (0.48) | $ 0.59 | $ 0.51 | $ 0.27 | $ 1.82 | $ 0.83 | $ 0.78 | $ 1.54 | $ 0.89 | $ 5.01 | $ 5.07 |
Joint venture transaction costs | $ 0 | $ 39 | $ 0 | ||||||||
Convertible Preference Shares | |||||||||||
Diluted earnings (loss) per common share: | |||||||||||
Antidilutive shares excluded from computation of EPS | 8,000,000 | ||||||||||
Stock options and contingently issuable restricted stock units | |||||||||||
Diluted earnings (loss) per common share: | |||||||||||
Antidilutive shares excluded from computation of EPS | 4,000,000 | 4,000,000 | 3,000,000 | ||||||||
Oilseed processing venture in Eastern Europe | |||||||||||
Diluted earnings (loss) per common share: | |||||||||||
Interest acquired (as a percent) | 45.00% | ||||||||||
Joint venture transaction costs | $ 39 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-Based Compensation | |||
Share-based compensation expense | $ 29 | $ 44 | $ 46 |
Stock option awards | |||
Fair Value Assumptions | |||
Expected option term (in years) | 5 years 10 months 10 days | 5 years 8 months 1 day | 5 years 10 months 13 days |
Expected dividend yield | 2.09% | 3.04% | 1.67% |
Expected volatility | 24.85% | 26.06% | 27.47% |
Risk-free interest rate | 2.21% | 1.41% | 1.73% |
Shares | |||
Outstanding at beginning of period (in shares) | 5,949,819 | ||
Granted (in shares) | 1,344,100 | ||
Exercised (in shares) | (862,726) | ||
Forfeited or expired (in shares) | (214,623) | ||
Outstanding at end of period (in shares) | 6,216,570 | 5,949,819 | |
Exercisable at end of period (in shares) | 3,716,283 | ||
Weighted-Average Exercise Price | |||
Outstanding balance at beginning of period (in dollars per share) | $ 69.35 | ||
Granted (in dollars per share) | 80.99 | ||
Exercised (in dollars per share) | 67.47 | ||
Forfeited or expired (in dollars per share) | 76.11 | ||
Outstanding balance at end of period (in dollars per share) | 71.88 | $ 69.35 | |
Exercisable balance at end of period (in dollars per share) | $ 73.62 | ||
Weighted-Average Remaining Contractual Term | |||
Outstanding , Weighted-Average Remaining Contractual Term | 6 years 1 month 2 days | ||
Exercisable, Weighted-Average Remaining Contractual Term | 4 years 4 months 28 days | ||
Aggregate Intrinsic Value | |||
Outstanding at end of period (in dollars) | $ 26 | ||
Exercisable at end of period (in dollars) | $ 10 | ||
Additional disclosures | |||
Weighted-average grant date fair value (in dollars per share) | $ 17.13 | $ 8.86 | $ 19.36 |
Total intrinsic value of options exercised (in dollars) | $ 11 | $ 1 | $ 11 |
Unrecognized Compensation Cost | |||
Total unrecognized compensation related to non-vested awards (in dollars) | $ 20 | ||
Period of recognition of total unrecognized compensation related to non-vested shares | 2 years | ||
Restricted stock units | |||
Unrecognized Compensation Cost | |||
Total unrecognized compensation related to non-vested awards (in dollars) | $ 33 | ||
Period of recognition of total unrecognized compensation related to non-vested shares | 2 years | ||
Restricted Stock Units | |||
Restricted stock units outstanding at beginning of period (in shares) | 1,544,265 | ||
Granted (in shares) | 694,082 | ||
Vested/issued (in shares) | (343,790) | ||
Forfeited/cancelled (in shares) | (190,553) | ||
Restricted stock units outstanding at end of period (in shares) | 1,704,004 | 1,544,265 | |
Weighted- Grant-Date Fair Value | |||
Restricted stock units outstanding at beginning of period (in dollars per share) | $ 64.85 | ||
Granted (in dollars per share) | 76.79 | $ 51.42 | $ 81.97 |
Vested/issued (in dollars per share) | 75.22 | ||
Forfeited/cancelled (in dollars per share) | 72.99 | ||
Restricted stock units outstanding at end of period (in dollars per share) | $ 66.81 | $ 64.85 | |
Restricted Stock Units, Additional Activity Information | |||
Common shares issued, net of common shares withheld to cover taxes | 267,419 | ||
Common shares issued, net of common shares withheld to cover taxes, weighted-average fair value (in dollars per share) | $ 77.12 | ||
Total fair value of restricted stock units vested (in dollars) | $ 28 | ||
Performance-based restricted stock units | |||
Restricted Stock Units | |||
Vested/issued (in shares) | (124,984) | ||
Forfeited/cancelled (in shares) | (147,028) | ||
2016 EIP | |||
Common Shares Reserved for Share-Based Awards | |||
Common shares reserved for grant of stock options, stock awards and other awards | 5,800,000 | ||
Common shares available for future grants | 3,850,654 | ||
2016 EIP | Stock option awards | |||
Share-Based Compensation | |||
Expiration period of award | 10 years | ||
2016 EIP | Stock option awards | Minimum | |||
Share-Based Compensation | |||
Vesting period | 1 year | ||
2016 EIP | Stock option awards | Maximum | |||
Share-Based Compensation | |||
Vesting period | 3 years | ||
2016 EIP | Restricted stock units | Minimum | |||
Share-Based Compensation | |||
Vesting period | 1 year | ||
2016 EIP | Restricted stock units | Maximum | |||
Share-Based Compensation | |||
Vesting period | 3 years | ||
2017 Directors' Plan | |||
Common Shares Reserved for Share-Based Awards | |||
Common shares reserved for grant of stock options, stock awards and other awards | 120,000 | ||
Common shares available for future grants | 101,720 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) ha in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)ha | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Minimum lease payments under non-cancelable operating leases | |||
2,018 | $ 205 | ||
2,019 | 197 | ||
2,020 | 195 | ||
2,021 | 100 | ||
2,022 | 70 | ||
Thereafter | 107 | ||
Total | 874 | ||
Rent expense under non-cancelable operating leases | |||
Rent expense | 251 | $ 213 | $ 182 |
Sublease income | (9) | (9) | (6) |
Net rent expense | $ 242 | 204 | 176 |
Sugarcane partnership agreements | |||
Rent expense under non-cancelable operating leases | |||
Hectares of land covered by the agricultural partnership agreement under cultivation | ha | 225 | ||
Payments related to agricultural partnership agreements | $ 105 | 89 | 75 |
Agricultural partnership expense | $ 69 | $ 64 | $ 50 |
Minimum | |||
Lease Commitments | |||
Life of lease agreements | 1 year | ||
Average | Sugarcane partnership agreements | |||
Rent expense under non-cancelable operating leases | |||
Life of agricultural partnership agreements | 4 years |
SEGMENT INFORMATION - FINANCIAL
SEGMENT INFORMATION - FINANCIAL INFORMATION BY SEGMENT (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information | |||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | $ 11,605 | $ 11,423 | $ 11,645 | $ 11,121 | $ 11,799 | $ 11,423 | $ 10,541 | $ 8,916 | $ 45,794 | $ 42,679 | $ 43,455 |
Foreign currency gains (losses) | 95 | (8) | (8) | ||||||||
Noncontrolling interests | (14) | (22) | 1 | ||||||||
Other income (expense)—net | 49 | 12 | (18) | ||||||||
Segment EBIT | 436 | 1,143 | 1,248 | ||||||||
Discontinued operations | 0 | $ 0 | $ 6 | $ (6) | (1) | $ 5 | $ (4) | $ (9) | 0 | (9) | 35 |
Depreciation, depletion and amortization | (609) | (547) | (545) | ||||||||
Investments in affiliates | 461 | 373 | 461 | 373 | 329 | ||||||
Total assets | 18,871 | 19,188 | 18,871 | 19,188 | 17,914 | ||||||
Capital expenditures | 662 | 784 | 649 | ||||||||
Pre-tax, impairment charges | 52 | 87 | 57 | ||||||||
Gain on sale of disposition of assets | 9 | 122 | 47 | ||||||||
Selling, general and administrative expenses | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 19 | 6 | 20 | ||||||||
Cost of goods sold | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 16 | 9 | 24 | ||||||||
Other income (expense) | |||||||||||
Operating Segment Information | |||||||||||
Pre-tax, impairment charges | 17 | 72 | 13 | ||||||||
Agribusiness | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 31,741 | 30,061 | 31,267 | ||||||||
Foreign currency gains (losses) | 85 | (7) | 67 | ||||||||
Other income (expense)—net | 62 | 24 | (3) | ||||||||
Segment EBIT | 256 | 875 | 1,108 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Depreciation, depletion and amortization | (267) | (236) | (234) | ||||||||
Gain on disposition of subsidiary | 9 | ||||||||||
Pre-tax, impairment charges | 41 | 29 | 25 | ||||||||
Gain on sale of disposition of assets | 122 | 47 | |||||||||
Edible Oil Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 8,018 | 6,859 | 6,698 | ||||||||
Foreign currency gains (losses) | 3 | (1) | 0 | ||||||||
Other income (expense)—net | (6) | 7 | 4 | ||||||||
Segment EBIT | 126 | 112 | 59 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Depreciation, depletion and amortization | (105) | (94) | (90) | ||||||||
Pre-tax, impairment charges | 3 | 2 | 32 | ||||||||
Milling Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 1,575 | 1,647 | 1,609 | ||||||||
Foreign currency gains (losses) | (3) | (7) | (8) | ||||||||
Other income (expense)—net | (4) | (4) | (3) | ||||||||
Segment EBIT | 63 | 131 | 103 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Depreciation, depletion and amortization | (61) | (62) | (46) | ||||||||
Pre-tax, impairment charges | 1 | 1 | |||||||||
Sugar and Bioenergy | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 4,054 | 3,709 | 3,495 | ||||||||
Foreign currency gains (losses) | 11 | 9 | (68) | ||||||||
Other income (expense)—net | (3) | (16) | (15) | ||||||||
Segment EBIT | (12) | (4) | (27) | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Depreciation, depletion and amortization | (164) | (143) | (160) | ||||||||
Pre-tax, impairment charges | 7 | 46 | |||||||||
Fertilizer | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | 406 | 403 | 386 | ||||||||
Foreign currency gains (losses) | (1) | (2) | 1 | ||||||||
Other income (expense)—net | 0 | 1 | (1) | ||||||||
Segment EBIT | 3 | 29 | 5 | ||||||||
Discontinued operations | 0 | 0 | 0 | ||||||||
Depreciation, depletion and amortization | (12) | (12) | (15) | ||||||||
Pre-tax, impairment charges | 9 | ||||||||||
Operating | Agribusiness | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests | (9) | (21) | (9) | ||||||||
Investments in affiliates | 411 | 325 | 411 | 325 | 249 | ||||||
Total assets | 12,094 | 12,159 | 12,094 | 12,159 | 11,832 | ||||||
Capital expenditures | 318 | 421 | 359 | ||||||||
Operating | Edible Oil Products | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests | (8) | (13) | (8) | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | 2,610 | 2,329 | 2,610 | 2,329 | 1,963 | ||||||
Capital expenditures | 136 | 108 | 63 | ||||||||
Operating | Milling Products | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests | 0 | 0 | 0 | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | 1,460 | 1,444 | 1,460 | 1,444 | 1,343 | ||||||
Capital expenditures | 45 | 75 | 60 | ||||||||
Operating | Sugar and Bioenergy | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests | 0 | 0 | 0 | ||||||||
Investments in affiliates | 50 | 48 | 50 | 48 | 80 | ||||||
Total assets | 2,195 | 2,754 | 2,195 | 2,754 | 2,318 | ||||||
Capital expenditures | 139 | 131 | 125 | ||||||||
Operating | Fertilizer | |||||||||||
Operating Segment Information | |||||||||||
Noncontrolling interests | (2) | (2) | (1) | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | 330 | 318 | 330 | 318 | 299 | ||||||
Capital expenditures | 9 | 16 | 17 | ||||||||
Discontinued Operations & Unallocated | |||||||||||
Operating Segment Information | |||||||||||
Foreign currency gains (losses) | 0 | 0 | 0 | ||||||||
Noncontrolling interests | 14 | 19 | |||||||||
Other income (expense)—net | 0 | 0 | 0 | ||||||||
Segment EBIT | 0 | 0 | 0 | ||||||||
Discontinued operations | 0 | (9) | 35 | ||||||||
Depreciation, depletion and amortization | 0 | 0 | 0 | ||||||||
Investments in affiliates | 0 | 0 | 0 | 0 | 0 | ||||||
Total assets | $ 182 | $ 184 | 182 | 184 | 159 | ||||||
Capital expenditures | 15 | 33 | 25 | ||||||||
Inter-segment Eliminations | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (4,531) | (4,004) | (3,726) | ||||||||
Inter-segment Eliminations | Agribusiness | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (4,323) | (3,867) | (3,499) | ||||||||
Inter-segment Eliminations | Edible Oil Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (154) | (115) | (178) | ||||||||
Inter-segment Eliminations | Milling Products | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (5) | (9) | (37) | ||||||||
Inter-segment Eliminations | Sugar and Bioenergy | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | (45) | (13) | (12) | ||||||||
Inter-segment Eliminations | Fertilizer | |||||||||||
Operating Segment Information | |||||||||||
Net sales to external customers | $ (4) | $ 0 | $ 0 |
SEGMENT INFORMATION - NET INCOM
SEGMENT INFORMATION - NET INCOME TO SEGMENT EBIT (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of total segment EBIT: | |||||||||||
Total segment EBIT from continuing operations | $ 436 | $ 1,143 | $ 1,248 | ||||||||
Interest income | 38 | 51 | 43 | ||||||||
Interest expense | (263) | (234) | (258) | ||||||||
Income tax (expense) benefit | (56) | (220) | (296) | ||||||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | $ 6 | $ (6) | $ (1) | $ 5 | $ (4) | $ (9) | 0 | (9) | 35 |
Noncontrolling interests' share of interest and tax | 5 | 14 | 19 | ||||||||
Net income (loss) attributable to Bunge | $ (60) | $ 92 | $ 81 | $ 47 | $ 271 | $ 118 | $ 121 | $ 235 | $ 160 | $ 745 | $ 791 |
SEGMENT INFORMATION - SALES BY
SEGMENT INFORMATION - SALES BY PRODUCT GROUP (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
External Customers Net Sales, Products and Services | |||||||||||
Net sales | $ 11,605 | $ 11,423 | $ 11,645 | $ 11,121 | $ 11,799 | $ 11,423 | $ 10,541 | $ 8,916 | $ 45,794 | $ 42,679 | $ 43,455 |
Agricultural Commodity Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | 31,741 | 30,061 | 31,267 | ||||||||
Edible Oil Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | 8,018 | 6,859 | 6,698 | ||||||||
Wheat Milling Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | 988 | 1,079 | 1,054 | ||||||||
Corn Milling Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | 587 | 568 | 555 | ||||||||
Sugar and Bioenergy Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | 4,054 | 3,709 | 3,495 | ||||||||
Fertilizer Products | |||||||||||
External Customers Net Sales, Products and Services | |||||||||||
Net sales | $ 406 | $ 403 | $ 386 |
SEGMENT INFORMATION - GEOGRAPHI
SEGMENT INFORMATION - GEOGRAPHIC AREA INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
External Customers | |||||||||||
Net sales to external customers | $ 11,605 | $ 11,423 | $ 11,645 | $ 11,121 | $ 11,799 | $ 11,423 | $ 10,541 | $ 8,916 | $ 45,794 | $ 42,679 | $ 43,455 |
Long-lived Assets | |||||||||||
Long-lived assets | 6,638 | 6,200 | 6,638 | 6,200 | 5,829 | ||||||
Europe | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 16,313 | 14,238 | 14,346 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 1,485 | 1,107 | 1,485 | 1,107 | 1,074 | ||||||
United States | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 10,128 | 10,239 | 10,256 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 1,267 | 1,249 | 1,267 | 1,249 | 1,130 | ||||||
Asia-Pacific | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 8,613 | 7,843 | 8,680 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 483 | 505 | 483 | 505 | 558 | ||||||
Brazil | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 7,040 | 6,604 | 6,117 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 2,406 | 2,452 | 2,406 | 2,452 | 2,086 | ||||||
Argentina | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,433 | 1,406 | 1,490 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 216 | 189 | 216 | 189 | 204 | ||||||
Canada | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,114 | 1,120 | 1,245 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | 440 | 378 | 440 | 378 | 400 | ||||||
Rest of world | |||||||||||
External Customers | |||||||||||
Net sales to external customers | 1,153 | 1,229 | 1,321 | ||||||||
Long-lived Assets | |||||||||||
Long-lived assets | $ 341 | $ 320 | $ 341 | $ 320 | $ 377 |
QUARTERLY FINANCIAL INFORMAT117
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 11,605 | $ 11,423 | $ 11,645 | $ 11,121 | $ 11,799 | $ 11,423 | $ 10,541 | $ 8,916 | $ 45,794 | $ 42,679 | $ 43,455 |
Gross profit | 459 | 490 | 355 | 460 | 704 | 556 | 530 | 620 | 1,764 | 2,410 | 2,693 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 6 | (6) | (1) | 5 | (4) | (9) | 0 | (9) | 35 |
Net income (loss) | (53) | 92 | 87 | 48 | 285 | 130 | 120 | 232 | 174 | 767 | 790 |
Net income (loss) attributable to Bunge | $ (60) | $ 92 | $ 81 | $ 47 | $ 271 | $ 118 | $ 121 | $ 235 | $ 160 | $ 745 | $ 791 |
Earnings (loss) per common share-basic | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | $ 0.59 | $ 0.48 | $ 0.31 | $ 1.89 | $ 0.80 | $ 0.81 | $ 1.64 | $ 0.90 | $ 5.13 | $ 4.90 | |
Net income (loss) from discontinued operations (in dollars per share) | $ 0 | 0 | 0.04 | (0.04) | (0.01) | 0.03 | (0.03) | (0.07) | 0 | (0.06) | 0.24 |
Net income (loss) to Bunge common shareholders (in dollars per share) | (0.48) | 0.59 | 0.52 | 0.27 | 1.88 | 0.83 | 0.78 | 1.57 | 0.90 | 5.07 | 5.14 |
Earnings (loss) per common share-diluted | |||||||||||
Net income (loss) from continuing operations (in dollars per share) | 0.59 | 0.48 | 0.31 | 1.83 | 0.79 | 0.81 | 1.60 | 0.89 | 5.07 | 4.84 | |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 0 | 0.03 | (0.04) | (0.01) | 0.04 | (0.03) | (0.06) | 0 | (0.06) | 0.23 |
Net income (loss) to Bunge common shareholders (in dollars per share) | $ (0.48) | $ 0.59 | $ 0.51 | $ 0.27 | $ 1.82 | $ 0.83 | $ 0.78 | $ 1.54 | $ 0.89 | $ 5.01 | $ 5.07 |
SCHEDULE II-VALUATION AND QU118
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowances for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | $ 212 | $ 210 | $ 247 |
Charged to costs and expenses | 42 | 45 | 64 |
Charged to other accounts | (1) | 15 | (47) |
Deductions from reserves | (70) | (58) | (54) |
Balance at end of period | 183 | 212 | 210 |
Allowances for secured advances to suppliers | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 50 | 42 | 61 |
Charged to costs and expenses | 20 | 1 | 11 |
Charged to other accounts | 0 | 9 | (21) |
Deductions from reserves | (5) | (2) | (9) |
Balance at end of period | 65 | 50 | 42 |
Allowances for recoverable taxes | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 35 | 32 | 43 |
Charged to costs and expenses | 12 | 162 | 7 |
Charged to other accounts | (1) | 1 | (16) |
Deductions from reserves | (7) | (160) | (2) |
Balance at end of period | 39 | 35 | 32 |
Income tax valuation allowances | |||
Movement in Valuation Allowances and Reserves | |||
Balance at beginning of period | 839 | 798 | 1,078 |
Charged to costs and expenses | 43 | (44) | 44 |
Charged to other accounts | 18 | 85 | (324) |
Balance at end of period | $ 900 | $ 839 | $ 798 |